We know the phrase “rates are on the rise” has been repeated countless times in the media over the past few years. For many, it can start to feel like background noise.

However, the developments of the past few days are significant and may impact you.

Inflation concerns, largely driven by the ongoing conflict in the Middle East, have triggered significant movements in the swap markets. 2-year Sterling Overnight Index Average (SONIA) Swaps jumped close to 4% yesterday, the 9th of March 2026, compared to 3.43% one month prior.

Financial markets are rapidly reassessing what the Bank of England may do next with UK interest rates, and lenders have already begun responding by pulling mortgage products and repricing them at higher levels. We believe now is an important moment for borrowers to consider locking in their mortgage rate to protect themselves from further increases and potentially save significant sums over the long term.

Our Recommendation

Whilst we do not anticipate runaway rate growth, the direction of travel appears to be upward.

If your deal ends within 6–9 months, or you are arranging your first mortgage:

Now is the time to pick up the phone. We can provide a formal quotation promptly, giving you certainty on your monthly payments and protecting you from any further rate adjustments.

Most lenders allow borrowers to secure a fixed rate up to six months before their existing deal ends, often with the flexibility to switch if more competitive options emerge before completion.

Every fraction of a percentage point matters on a mortgage. Even a small 0.1% change in rates on a £500,000 mortgage could add hundreds of pounds per year to your payments*.

If you have a variable or tracker rate mortgage:

Those currently on variable or tracker rates are particularly exposed to any fluctuation in rate movements. Locking in a fixed rate today provides meaningful long-term security.

If you are currently in a fixed deal but with relatively low Early Repayment Charges (ERCs):

If you still have time remaining on their current mortgage, but with relatively low ERCs remaining on their deal, in certain cases, it can be worth reviewing your situation now. Securing a new rate today may still result in savings over the medium term — even after accounting for the cost of the ERC.

Every situation is different, but with rates moving quickly, reviewing the numbers now could help you avoid higher borrowing costs later.

Contact Private Finance today on 0800 652 0971 or email info@privatefinance.co.uk to discuss your options and secure your rate today.

This article is based on information available on the date of issue, 10th March 2026.

Disclaimer: The views and opinions expressed in this content are those of the author and do not constitute financial, legal, or professional advice, nor should they be interpreted as a recommendation. They do not necessarily reflect the official views, policies, or positions of Private Finance, and are not intended to represent broader market or industry perspectives.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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