Should I Fix My Mortgage or Wait for Rate Cuts? Questions Homeowners Are Asking in 2025

If you have a mortgage in this country, you have probably asked yourself at least one of these questions in the last few months:

• “My fixed deal ends next year — should I lock in now?”
• “What if rates fall soon and I’m stuck paying more?”
• “Is it better to overpay my mortgage or build up savings?”

You are not alone. Interest rates, house prices and inflation have moved a lot in recent years, and it is completely normal to feel unsure about your next step.

This article is for general information only and cannot tell you what you personally should do — but it can help you frame the questions you might want to ask yourself or a regulated adviser.

1. What has actually happened to interest rates and inflation?

Before making any decision, it helps to know where things stand today.

Bank of England base rate

At its meeting ending on 5 November 2025, the Bank of England’s Monetary Policy Committee voted by a narrow majority to keep Bank Rate at 4%. Four members actually voted for a cut to 3.75%.

The Bank’s summary explains that:

• Inflation is judged to have peaked.
• Underlying “disinflation” is continuing.
• If progress continues, Bank Rate is likely to follow a gradual downward path.

🔗 Monetary Policy Summary (November 2025):
https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2025/november-2025

Inflation

Official figures from the Office for National Statistics show that consumer price inflation has eased compared with earlier spikes:

• The Consumer Prices Index (CPI) rose by 3.6% in the 12 months to October 2025, down from 3.8% in September.
• The broader CPIH measure, which includes owner occupiers’ housing costs, rose by 3.8% over the same period.

🔗 Consumer price inflation, October 2025:
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/october2025

In short: inflation is still above the 2% target, but it has come down significantly, and the central bank is openly talking about gradual cuts if this trend continues.

2. “My fixed deal ends next year – should I lock in now or wait?”

This is probably the most common question at the moment.

A guide from MoneySuperMarket sets out the trade-offs clearly:

• Fixed-rate mortgages give certainty: your interest rate and monthly payment stay the same during the fixed term.
• Variable or tracker deals move with rates: your payment can go up or down as the base rate changes.

🔗 “Should I fix my mortgage?” (MoneySuperMarket):
https://www.moneysupermarket.com/mortgages/should-i-fix-my-mortgage/

Here are a few practical angles to think about — not as advice, but as prompts:

Ask yourself:

1. How much would a payment rise hurt?

   • If a £100–£200 jump in your monthly mortgage payment would seriously strain your budget, you might value the stability of a fix more.

2. How long until your current deal ends?

   • If your fix ends within the next 6–12 months, lenders may already let you secure a new deal today that starts later.
   • If it ends much later, you may simply be too early to take meaningful action yet.

3. How anxious are you about uncertainty?

   • Some people sleep better knowing the exact payment for the next 2–5 years, even if it might be slightly higher than a variable option.
   • Others prefer to accept some risk and stay flexible.

4. Are you likely to move house soon?

   • If you plan to move in the next couple of years, early-repayment charges on some fixed deals can become a real issue.
   • In that situation, portability and flexibility matter as much as the headline rate.

Remember: no one — not commentators, not journalists, not this article — can guarantee exactly where rates will be in two years. The decision is about what level of risk and predictability you are comfortable with.

3. “Should I overpay my mortgage instead of chasing the very best fixed rate?”

Another common question is whether to:

• put spare money into overpaying the mortgage,
• or keep it in savings (or other options) instead.

Guides from MoneyHelper, MoneySavingExpert and others explain that overpaying can:

• shorten your mortgage term,
• reduce the total interest you pay,
• and sometimes save thousands of pounds over the life of the loan.

🔗 MoneyHelper – “Should you pay off your mortgage early?”:
https://www.moneyhelper.org.uk/en/homes/buying-a-home/should-you-pay-off-your-mortgage-early

🔗 MoneySavingExpert – “Mortgages vs savings – should I overpay?”:
https://www.moneysavingexpert.com/mortgages/mortgages-vs-savings/

But they also highlight important checks before overpaying:

• Early repayment charges (ERCs): many fixed deals only let you overpay up to a certain percentage each year without a fee.
• Emergency savings: once money is paid into the mortgage, it is usually not easy to get back. Most guides suggest keeping a buffer for emergencies in an easy-access account first.
• Debts with higher interest: if you have high-interest debts (for example, some credit cards), paying those down first often has a bigger impact than overpaying a relatively cheaper mortgage.

A good way to frame it is not “Which is perfect?” but “What mix of overpayments and savings makes sense for me, given my risks and goals?”

4. “What if rates fall right after I fix – will I have made a mistake?”

This is a very human worry.

A few thoughts:

• Every mortgage decision is made with the information available today, not with perfect hindsight.
• If you choose a fixed deal that you can comfortably afford and that protects you from jumps you could not handle, that can still be a sensible choice even if cheaper deals appear later.
• Conversely, if you decide to stay variable and rates fall, that can feel like a win — but you will have taken on the possibility that they could have risen instead.

You can soften this emotional risk by:

• fixing part of your borrowing (through certain products that allow mixing, if suitable), or
• choosing a shorter fixed term, so you can reassess sooner, or
• focusing on whether the deal is affordable and stable for your household, rather than trying to guess the exact bottom of the market.

5. “How do I manage all this without it becoming overwhelming?”

It is very easy to feel overloaded.

Here is a simple, non-personalised checklist you can adapt:

1. Know your dates

   • When does your current deal end?
   • When will you move onto your lender’s standard variable rate?

2. Know your numbers

   • How much is your outstanding balance?
   • How would a 0.5% or 1% rate change affect your monthly payment?

3. Check your product rules

   • Overpayment limits and ERCs.
   • Portability rules if you might move home.

4. Build a basic safety buffer

   • Aim for some cash in an easy-access account for emergencies, if you can.

5. Decide what you value more right now

   • Payment certainty and peace of mind, or
   • Flexibility and the possibility of savings if rates fall.

If you are still unsure, that is exactly the situation where independent, regulated advice can help — someone authorised to consider your specific circumstances and make a recommendation that this article cannot provide.

Key Takeaways

• The Bank of England currently has Bank Rate at 4%, and has said that if disinflation continues, rates are likely to move gradually lower over time.
  • https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2025/november-2025
• Inflation has eased, with CPI at 3.6% in the 12 months to October 2025.
  • https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/october2025
• Many homeowners are asking the same questions: fix now or wait, overpay or save, lock in or stay flexible.
• There is no one-size-fits-all answer. What matters most is:
  • your budget,
  • your tolerance for risk,
  • your plans (for example, moving home), and
  • the specific rules of your current and potential mortgage products.

Sources

• Bank of England – Monetary Policy Summary and Minutes, November 2025:
  https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2025/november-2025

• Office for National Statistics – Consumer price inflation, October 2025:
  https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/october2025

• MoneySuperMarket – “Should I fix my mortgage?”:
  https://www.moneysupermarket.com/mortgages/should-i-fix-my-mortgage/

• MoneyHelper – “Should you pay off your mortgage early?”:
  https://www.moneyhelper.org.uk/en/homes/buying-a-home/should-you-pay-off-your-mortgage-early

• MoneySavingExpert – “Mortgages vs savings – should I overpay?”:
  https://www.moneysavingexpert.com/mortgages/mortgages-vs-savings/

Disclaimer: This article is for general informational and educational purposes only. It does not constitute financial, investment, tax or legal advice, and it does not take into account your personal circumstances or create any adviser-client relationship.