Author
At Verve Financial, we know that when interest rates shift, so do the questions. With UK mortgage rates starting to dip for the first time in months, many buyers are asking:
“Should I wait for better rates or act now before prices rise?”
Let’s unpack what’s happening in the market—and how it could affect your next move.
Why Are Mortgage Rates Falling?
Mortgage lenders have recently reduced their fixed-rate offers, with some now dipping below 4%. According to The Times, lenders like Nationwide and Halifax are pricing in expected base rate cuts from the Bank of England, which could come as early as summer 2025.
Mortgage rates fall below 4% – The Times
As swap rates (which influence mortgage pricing) continue to fall, many buyers are securing cheaper deals—especially those with solid deposits or remortgaging.
But What’s Happening to House Prices?
According to the Office for National Statistics, the average UK house price rose by 5.4% in the year to February 2025, reaching £268,000.
ONS House Price Index – April 2025
Rightmove also reports that the average asking price in April hit a record high of £377,182.
Rightmove Property Price Index – April 2025
So even if mortgage rates drop further, rising home prices could outpace your savings if you wait too long.
Wait or Buy? What We Tell Our Clients
At Verve, we believe your decision should be based on your personal situation, not just market headlines. Here's what we consider:
Reasons to Act Now
- Secure a lower rate now before buyer demand spikes.
- Beat rising property prices and increased competition.
- Lock in fixed repayments for peace of mind.
Reasons to Wait
- Expecting rates to drop further (especially if you’re not quite ready financially).
- Hoping for a broader choice of deals later this year.
But remember: timing the market perfectly is almost impossible.
What’s Right for You?
Here’s what we ask our clients at Verve Financial:
- Are you financially prepared with a stable income and a deposit?
- Can you afford repayments even if rates fluctuate?
- Do you plan to stay in the property for at least 3–5 years?
If the answer is yes, buying now—while rates are falling but competition is still moderate—could be the right move.
Links:
1.https://www.thetimes.com/business-money/money/article/mortgage-rates-fall-below-4-percent-as-lenders-price-in-tariff-turmoil-xfglvxwg0?region=global
2. https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/april2025
3. https://uk.finance.yahoo.com/news/property-prices-rise-april-rightmove-050033174.html?
4. https://www.ft.com/content/4af88dc5-a81e-44bb-b4e3-b5fb15afe8b8
