Mortgage Rate Changes: What You Need to Know
As we move through 2026, inflation has continued to ease and the Bank of England has adopted a more balanced, data-driven approach to monetary policy. While base rate cuts are widely anticipated, their timing and pace remain uncertain.
That said, competition among lenders has intensified, and average mortgage rates are noticeably lower than their recent peaks.
As of early 2026:
- 5-year fixed mortgage rates average around 4.30% – 4.60%, down significantly from the highs of over 5.50% seen in 2023.
- 2-year fixed mortgage rates typically sit between 4.80% – 5.10%, reflecting ongoing caution around short-term rate movements.
These improvements are welcome news for buyers and remortgagers alike. However, if you’re already in the middle of a mortgage application, you may be wondering what happens if your lender reduces rates before your mortgage completes.
Can Mortgage Rates Change After Offer?
Yes. Mortgage lenders regularly change their rates in response to factors such as funding costs, swap rates, competition between lenders, and expectations around future interest rates. When a lender reduces its rates, this can mean that a lower mortgage deal becomes available — even if you already have a mortgage offer in place.
Whether you can benefit from a lower rate depends on your lender’s policy and the stage your application is at. Some lenders automatically apply lower rates to existing offers, while others require a formal request or the issue of a revised mortgage offer.
Can You Change Your Mortgage Rate Before Completion?
If you’ve applied for a mortgage and the lender reduces rates before your completion date, you may be able to switch to the new lower rate.
Here’s how different lenders may handle interest rate changes during the mortgage application stage:
- Automatic rate adjustment – some lenders will automatically apply the new lower rate to your mortgage offer if it hasn’t yet completed
- Rate switch before completion – many lenders allow applicants to switch to the lower rate, but this may require issuing a new offer, which could delay completion
- Full new application required – in some cases, changing to a lower rate may mean submitting a brand-new application, which could involve a fresh credit check and updated affordability assessment
It’s important to check with your mortgage broker or lender about their policy on rate changes before completion.
Can You Change Your Mortgage Rate Between Exchange and Completion?
Changing your mortgage rate specifically between exchange and completion is possible, but generally not advised as it could cause delays and impact your completion date. It will also depend on lender rules and timelines.
Should You Change Your Mortgage Offer Before Completion?
If your lender offers a lower rate before completion, switching can often result in savings. However, there are considerations to keep in mind:
- Processing delays – if switching requires a new application, it could delay your completion timeline
- Credit score impact – a new application might trigger another hard credit check
- Changes in financial circumstances – lenders reassess your finances when issuing a new mortgage offer, so any changes (e.g. job switch, additional debts) could impact approval
What Happens if Rates Go Down After I Lock In?
If you secured a fixed rate mortgage several months ago at a higher rate, you still have options:
- Stick with your current lender – some lenders allow you to switch to a lower rate on the same product range before completion, often by issuing a revised mortgage offer
- Explore the market again – if rates have dropped significantly, it may be worth withdrawing your current application and exploring new deals with other lenders, particularly if the potential savings outweigh the costs
- Consider a product transfer – you’re remortgaging with an existing lender, a product transfer can sometimes be quicker and more cost-effective than applying for a brand-new mortgage
How Can a Mortgage Broker Help with Interest Rate Changes During Application?
When mortgage rates are changing frequently, a whole-of-market mortgage broker plays a crucial role in ensuring you don’t miss out on a better deal while your application is in progress.
1. Monitoring rate changes on your behalf
Rather than relying on you to track the market, your broker actively monitors lender rate movements throughout the application process. If rates fall or a more suitable product becomes available, they can identify this quickly and assess whether switching would benefit you.
2. Securing a lower rate if one becomes available
If your lender reduces its rates before completion, a broker can approach the lender to request a rate switch or a revised mortgage offer where possible. This can help ensure you benefit from lower rates without having to restart the process unnecessarily.
3. Assessing whether switching is worth it
Not every lower rate is automatically the best option. A broker will calculate the potential savings and weigh them against any risks, fees, or delays, helping you decide whether changing your mortgage offer is the right move.
4. Managing the process and minimising delays
If a new offer or product switch is required, your broker handles the paperwork, liaises with the lender and solicitors, and works to minimise disruption to your completion timeline.
5. Providing clear, unbiased advice
With constant media speculation around interest rates, a broker provides practical, personalised advice based on your circumstances — not headlines. This ensures you make informed decisions at every stage of the application.
Could You Get a Better Rate Before Completion?
If you’re in the process of getting a mortgage and want to explore your options following a rate change, reach out to a mortgage expert. A mortgage broker can review your case and help determine the best course of action.
Get in touch with one of our experts at 023 8235 2300 to discuss your mortgage options today.
