BORROWERS have been urged to lock in mortgage rates ahead of the release of inflation data on Wednesday as brokers warn “markets can turn quickly” and reassure borrowers that they can change their deal later if a lower rate emerges with the same lender.
If inflation cools, as expected, on Wednesday, and the Consumer Price Index (CPI) finally starts the journey down to the 2% target, mortgage rates are expected to trend downwards.
The UK’s CPI inflation rate was 3.4% in December 2025, up from 3.2% in November, though analysts expect it to have fallen back in January 2026 figures, with forecasts pointing to around 3% due to lower food and energy costs.
Big lenders, such as Nationwide and Santander, already cut rates at the tail end of last week and NatWest and Barclays followed suit today.
Rather than advise people to wait and see for what the inflation figure is, brokers have urged borrowers to lock in mortgage rates now.
They said you can agree a rate and then switch to a lower rate with the same lender at no extra cost.
Louis Mason, Content and Communications Director at London-based Oportfolio Mortgages, said: “If Wednesday’s CPI figures come in as expected, we’ll likely see more lenders shuffling their rates around, but let’s not get carried away just yet. What we’re likely to see is a slightly less boring version of the usual cautious tweaking. Nationwide and Santander’s moves last week were more like testing the water with their toes than diving in headfirst.
“For borrowers staring down the end of their fixed term, here’s my take. Stop waiting for the perfect moment because it doesn’t exist. Lock in a rate now. You’ve got nothing to lose because here’s the bit most people don’t know. If rates drop before your mortgage completes, you can usually switch to the lower rate with the same lender at no extra cost.
“It’s like having your cake and eating it, except with mortgages, which admittedly is less delicious. I’d wager only about a third of borrowers actually understand this. So reserve a rate now.”
Lock in a rate now
Richard Davidson, Mortgage Advisor at onlinemortgageadvisor.co.uk, said borrowers should lock in now.
He added: “The best advice for borrowers, based on recent years’ experience, is to always lock in rates when possible. While rate predictions are abundant in the current landscape, we’ve seen that unexpected events can easily disrupt them.
“Despite the general belief that the trend was downward, it has been a rollercoaster, with sudden jumps that throw everything off balance. The advantage is that most lenders allow you to ‘switch up’ during the process; if better rates become available, you can take them, but if they rise, you’ve already secured the lower rate.
“Economic data is priced in ahead of time, so unless there’s a shock result, inflation, GDP, or Bank of England decisions don’t have an immediate impact on rates.”
Markets can turn quickly
Rohit Kohli, Director at Romsey-based The Mortgage Stop, said many borrowers don’t know that flexibility exists.
He continued: “Every data point is being scrutinised right now. That alone shows the continued pressure on households. Inflation, swap rates and lender pricing are moving quickly, and lenders are reacting faster than they did even a year ago.
“If CPI cools as expected, we could see further downward momentum in rates. Some big names have already edged pricing down. But borrowers shouldn’t try to ride the wave off the back of a single release. Markets can turn just as quickly.
“I always suggest that the best approach is to secure a deal when it fits your timeline and budget. Most lenders will let you lock in a rate and switch to a lower one before completion if pricing improves. Many borrowers still don’t realise that flexibility exists.”
Photo by Jim Wilson on Unsplash.
