Mortgage pricing has moved sharply higher, with Moneyfacts reporting weekly increases of 17 basis points on the average two-year fix and 16 basis points on the average five-year fix. The average five-year fixed rate is now at its highest level since 2023, while the Bank of England has held Bank Rate at 3.75% amid inflation pressure and uncertainty over the rate outlook.
Advisers should distinguish between Bank Rate and swap-rate-driven fixed pricing when speaking to clients. Market expectations, gilt-market conditions and geopolitical risk can all affect lender funding costs and product availability before any change in the Bank Rate itself. Product withdrawals and repricing underline the value of acting promptly once a suitable recommendation has been made.
AI can support rate-watch workflows by flagging expiring deals, monitoring lender criteria changes and drafting client communications. However, firms should ensure automated messages do not create unsuitable urgency and that every recommendation reflects the customer’s objectives, fees, affordability and appetite for payment certainty.