After last month’s base rate reduction, the question now is whether there will be any further reductions and when might they be?

The money markets and financial institutions are predicting that the Bank of England base rate will drop to between 3.75% (Santander) and 3.25% (Goldman Sachs) by the end of the year but a shock survey by lender Butterfield Mortgages of 300 mortgage brokers has found that 69% expect the base rate to be above its current 4.5% at the start of 2026.

Butterfield Mortgages’ CEO, Alpa Bhakta, said the survey’s findings were ‘surprising’ given the current sentiment around rates.

In the meantime, Rightmove is reporting that average two-year and five-year fixed-rate deals have been edging lower over the last few weeks.

According to its data, the average two-year fixed rate mortgage is now 4.84%, down 0.03 percentage points from the start of March and 0.36 percentage points lower than a year ago.

Five-year fixed rates also saw a small drop to an average of 4.68%, down 0.01 percentage points in a week and 0.15 percentage points below March 2024.

For those with larger deposits, however, there are several five-year fixed rates below 4% and two-year fixed rates are not far behind.

Below is a selection of this month’s best buys from Moneyfacts.co.uk:

Two-year fixed rates: 4.13% from first direct. Product fee £490. 60% LTV.
4.14% from Nationwide BS. Product fee £999. 60% LTV.

Three-year fixed rates: 4.09% from first direct. Product fee £490. 60% LTV.
4.18% from Nationwide BS. Product fee £999. 60% LTV.

Five-year fixed rates: 3.99% from first direct. Product fee £490. 60% LTV.
4.04% from Nationwide BS. Product fee £999. 60% LTV.

Discounted variable: 4.29% For 3 years. From Newbury BS. Product fee £850. 75% LTV.
4.29% For 2 years. From Progressive BS. Product fee £0. 60% LTV.

BUY-TO-LET (BTL)

Best two-year fixed rate: 3.39% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV.

Five-year fixed rate: 3.94% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV

Best Discounted variable: 3.50% For 2 years. From The Stafford BS. Booking £100. Arrangement 5.00% Advance. 75% LTV.

The information we provide is our personal opinion and should not be relied upon for financial advice. Should you need financial advice or guidance please contact an appropriate professional.