The Bank of England held Bank Rate at 3.75% in September, but mortgage pricing has moved higher. Moneyfacts reported that average two-year fixed rates rose by 17 basis points and five-year fixes by 16 basis points in a week, with the average five-year rate reaching its highest level since 2023.
The divergence is a useful reminder that fixed mortgage pricing is driven by funding markets and expectations for future rates, rather than Bank Rate alone. Rising inflation, reported at 3.1% in August, and geopolitical uncertainty have added to volatility, while lender repricing and product withdrawals have increased urgency for borrowers nearing a mortgage deadline.
Advisers should use live sourcing and case-management data to identify clients with expiring deals, incomplete applications or product-transfer decisions. AI-powered monitoring can prioritise cases affected by rate movements, but any recommendation still requires an adviser-led assessment of fees, flexibility, affordability and the client’s wider financial plan.