Mortgage Rate Lock Urged Before Key Inflation Data Announcement
Lock Mortgage Rates Before Inflation Data, Experts Urge

Mortgage Rate Lock Urged Before Key Inflation Data Announcement

Homeowners across the United Kingdom are being strongly advised to lock in their mortgage rates in anticipation of a significant inflation announcement scheduled for this week. The Office for National Statistics (ONS) is set to release the consumer price index (CPI) rate for the twelve months leading up to January 2026 on Wednesday, February 18. This data could influence future interest rate decisions by the Bank of England, which has previously raised the base rate to as high as 5.25 percent in recent years.

Expert Insights on Lender Movements

Louis Mason, the content and communications director at London-based Oportfolio Mortgages, provided commentary to Newspage, stating, "If Wednesday's CPI figures align with expectations, we may witness more lenders adjusting their rates, though it is crucial to maintain perspective. What we are likely to observe is a slightly more dynamic version of the usual cautious adjustments. The recent moves by Nationwide and Santander resembled testing the waters rather than making aggressive changes."

Richard Davidson, a mortgage advisor at onlinemortgageadvisor.co.uk, emphasized the importance of proactive measures, adding, "Based on experiences from recent years, the best advice for borrowers is to secure rates whenever possible. While there are numerous rate predictions circulating, unexpected events can easily disrupt these forecasts, making it wise to act now."

Recent Rate Adjustments by Major Lenders

In response to the evolving economic landscape, several lenders have implemented changes to their mortgage products. Santander has reduced its first-time buyer fixed-rate mortgages at 85%, 90%, and 95% loan-to-value (LTV) ratios by up to 0.32% for terms of two, three, and five years. Additionally, selected other Santander fixed rates have been lowered by up to 0.08%, although some home mover and remortgage products at lower LTVs have seen marginal increases.

Nationwide Building Society has also announced cuts to fixed mortgage rates by up to 0.16 percentage points, with its lowest rate now standing at a competitive 3.54%. These adjustments apply to a broad range of two, three, and five-year fixed-rate products, including:

  • Three-year fixed rate at 90% LTV with a £999 fee: 4.4% (reduced by 0.16%)
  • Two-year fixed rate at 90% LTV with a £999 fee: 4.1% (reduced by 0.14%)
  • Two-year fixed rate at 60% LTV with a £1,499 fee: 3.67% (reduced by 0.15%)

For existing and new customers moving house, rates have been reduced by up to 0.15%, with examples including:

  • Two-year fixed rate at 60% LTV with a £1,499 fee: 3.54% (reduced by 0.15%)
  • Five-year fixed rate at 85% LTV with a £1,499 fee: 3.94% (reduced by 0.15%)
  • Two-year fixed rate at 85% LTV with a £999 fee: 3.78% (reduced by 0.09%)

These developments highlight the importance for homeowners to stay informed and consider securing favorable mortgage terms ahead of potential economic shifts driven by upcoming inflation data.