Mortgage rates are moving again – is your budget up to date?
If you are considering moving during the final quarter of 2026, now is the time to take a fresh look at what you can afford.
The Bank of England held Bank Rate at 3.75% in July. However, the decision was not unanimous, with three members voting for an increase to 4%. The Bank also warned that higher energy costs could place renewed pressure on inflation later this year.
Fixed mortgage rates do not simply move in line with Bank Rate. They are also affected by financial-market expectations, lenders’ funding costs and competition between banks and building societies. This means mortgage rates can rise or fall before the Bank of England makes its next decision.
Moneyfacts reported that average two-year and five-year fixed rates increased to 5.63% and 5.66% at the beginning of August. The average time a mortgage product remained available also fell from 14 days to just 11, showing how quickly individual deals can change.
There is some positive news. More than 7,350 mortgage products were available at the start of August, including improving choice at higher loan-to-value levels. Buyers may therefore have more options than they did earlier in the year, even though headline rates remain unsettled.
Why review your affordability now?
A mortgage calculation completed several months ago may no longer accurately reflect the amount you can borrow or the monthly payment you should expect. Changes to interest rates, household expenditure, income and lender criteria can all affect the outcome.
Mannleys Sales & Lettings works closely with Elevate Mortgage Group, whose qualified advisers can help both buyers and sellers understand their current position and prepare for their next move.
They can help you establish:
- How much you could realistically borrow
- The deposit or equity you have available
- What your monthly repayments may look like
- Whether a two-year, five-year or variable product could suit your circumstances
- Whether your existing mortgage can be transferred to your next property
- What price range you should be searching within
For sellers, this can provide a clearer picture of what an onward purchase may look like before placing a property on the market. For buyers, obtaining an up-to-date Agreement in Principle can provide confidence over the budget and demonstrate to a seller that you are in a position to proceed.
This is not about stretching your finances or trying to predict the next interest-rate decision. It is about understanding your position based on today’s market, while leaving enough room for the costs that come with moving and owning a home.
If you are hoping to move between October and December, preparation should begin now. Arrange a current valuation of your property with Mannleys and we can arrange for you to speak to Elevate Mortgages and make sure you understand the likely costs involved. That way, when the right opportunity appears, you can make a clear and informed decision.
Whether you are selling, buying or doing both, Mannleys Sales & Lettings and Elevate Mortgage Group can help you prepare properly and move forward with confidence.
Mortgage availability and lending terms depend on individual circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.