The Bank of England has held Bank Rate at 3.75%, yet mortgage pricing is moving in the opposite direction. Moneyfacts reported weekly increases of 17 basis points for average two-year fixes and 16 basis points for five-year fixes, while the average five-year fixed rate reached its highest level since 2023.
For advisers, the key message is that fixed-rate pricing is driven by swap markets and funding expectations, not simply the current Bank Rate. With inflation reported at 3.1%, geopolitical uncertainty adding volatility and lenders repricing or withdrawing ranges, clients approaching a purchase, remortgage or product-transfer deadline may need faster, scenario-based advice. AI-led client segmentation can help identify expiry cohorts, model payment sensitivity and prioritise proactive contact, but recommendations must remain subject to adviser oversight and live lender criteria.