With SONIA swaps continuing to slide on Monday, brokers believe “we could see some really big cuts in fixed rate mortgage pricing this week”, with one suggesting “we’re getting closer to seeing 2 and 3-year fixed rates starting with a 3”.
Newspage asked brokers how long they believe it will be before the first lender passes on the reductions in pricing on the markets and how low they could go. Views below.
Pete Mugleston, Mortgage Advisor & Managing Director at Online Mortgage Advisor commented: “With SONIA swaps continuing to slide, we’re getting closer to seeing 2- and 3-year fixed rates starting with a 3.
“If the current trends hold, it wouldn’t be surprising to see lenders break that barrier in the coming weeks. However, many are holding back, likely waiting for sustained swap rate stability before repricing aggressively.
“Lenders are cautious not to move too early and risk margin pressure if markets swing back. Once one makes the move, others will likely follow quickly, so borrowers should be ready to act fast when the tipping point arrives. We’re definitely edging into more exciting territory.”
Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management commented: “Swaps are on the slide and then some. Given that fixed rate mortgages are priced off swaps, it’s surely only a matter of time before the cuts from lenders start coming.
“Any ideas that the current uncertainty might be a flash in the pan are quickly subsiding and markets are betting on a rate cut at next month’s meeting of the Monetary Policy Committee. Trump has unleashed chaos but borrowers look set to benefit.”
Michelle Lawson, Director at Lawson Financial commented: “Though house prices fell in March according to the Halifax, lower interest rates resulting from the Trump tornado could be just the news borrowers in the UK have been waiting for to really ignite the mortgage market. Increased demand if rates come down will drive house prices back up.”
Daniel Hobbs, CEO at New Leaf Distribution commented: “Since Trump’s Liberation Day speech, swap rates have gone south and pretty sharply. Cuts from major lenders may be on the cards if this continues, which will be at least some good news amid the current economic uncertainty.”
Elliott Culley, Director at Switch Mortgage Finance commented: “With SWAP rates continuing to fall, it’s likely some lenders will release the handbrake and release the lowest rates seen so far in 2025. There will still be caution from lenders as this is a real-time event that is changing every day.
“At the moment Trump is holding firm on his decisions, which makes the reductions in rates more likely to be maintained as pressure grows, but if Trump does make some concessions this could lead to a change in the interest rate forecasts.”
Riz Malik, Independent Financial Adviser at R3 Wealth commented: “We could see some really big cuts in fixed rate mortgage pricing this week. With house prices dipping according to Halifax and millions set to remortgage, a rate cut could spark much needed momentum in a hesitant market. It will take a brave lender to make the first big move on rates, but once one does, others may quickly follow.”
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