Rate rollercoaster: 'Difficult not to get excited' but advisers urge caution

Brokers have welcomed a wave of mortgage rate cuts led by Barclays, but the mood across the industry is one of cautious optimism rather than celebration.

After weeks of relentless repricing, product withdrawals and climbing average rates, the advice to clients should remain consistent: lock in now, keep the deal under review, and don't mistake a calmer fortnight for a calm market.

Sadia Mehmood, of The Mortgage Mum, summed up the broker dilemma. With lenders having changed rates so frequently in recent weeks, many advisers are wary of raising client expectations too sharply. "Yes, we are seeing rate reductions which is promising and it is definitely good news and hopefully it continues," she said. "I am encouraging clients to secure their rates now to prevent it increasing, with a view to review the rate and amend it if it reduces further."

That approach — lock in, but stay ready to switch — reflects how brokers are managing client conversations right now. Craig Head, of Mortgage Required, acknowledged that rate cuts are a relief after a bruising stretch for the market, but warned against letting that relief cloud the fundamental message.

READ MORE: What the US-Iran ceasefire means for UK mortgage rates

“Given the concerning and rapidly changing situation over the last few months, it's difficult not to get excited when rates reduce. Brokers haven't had much to sing about recently and letting clients know there have been some rate reductions gives some welcome respite," he said. "However, this should be a measured response. This is a constantly evolving situation and remains volatile — securing a rate early and securing your position remains very important, making sure the client can benefit from the reductions but are not left exposed if and when the market turns again."

Carolyn Dunion, of McKendry Dunion, offered a similar note of caution, pointing to the broader global picture as a reason to temper expectations. She said her firm is encouraging clients to proceed as normal while being mindful not to overstretch themselves. "The global environment is far from certain," she said.

Chart showing average UK 2-year and 5-year fixed mortgage rates from January to April 2026

How we got here

The past six weeks have been among the most punishing for rate stability since the mini-budget crisis of 2022. When conflict broke out in Iran, swap rates — the wholesale funding costs that drive fixed-rate mortgage pricing — surged to highs of around 4.4%. Lenders repriced rapidly and repeatedly. The average two-year fixed rate climbed from 4.84% on 6 March to 5.89% by early April, while, according to HomeOwners Alliance, the average five-year fixed rose from 4.95% to 5.75% over the same period. More than 973 products — around 12.7% of the entire market, as reported by Mortgage Introducer.

The reversal began after a US–Iran ceasefire was announced on 8 April, prompting markets to retrace some of their earlier moves, with lower oil prices and a fall in the two-year gilt yield easing rate expectations. HSBC, Halifax, TSB and Santander all moved to cut rates last week. Swap rates have since fallen back towards 4% from their highs of around 4.4%.

Today, Barclays has gone furthest.

Barclays leads the charge

Barclays is reducing rates across more than 20 residential mortgage products from today, 22 April, cutting some deals by as much as 36 basis points. In the purchase range, its two-year fixed rate at 60% LTV with an £899 fee falls by 35bps to 4.60%, while the fee-free equivalent drops by 36bps to 4.79%. Five-year fixed rates are also being reduced by up to 24bps, with revised pricing starting from 4.76% at 60% LTV. Green Home products are included in the move.

READ MORE: Barclays slashes rates across more than 20 mortgage deals

Of 16 residential purchase mortgages seeing cuts today, 13 return to below 5% — having been pushed above that threshold during the conflict-driven repricing of recent weeks.

In the remortgage-only range, two-year fixed rates are being cut by up to 23bps, with pricing starting from 4.83% at 60% LTV, 4.90% at 75% LTV, and 5.11% at 80% LTV. The fee-free Great Escape remortgage range is also being reduced, with cuts of up to 25bps.

Aaron Strutt, product director at Trinity Financial, previously told Mortgage Introducer: "Barclays has jumped to the top of the best-buy tables again by lowering its two-year fix from 4.95% to 4.60%, undercutting many of its competitors. Thankfully more of Barclays' rates will start with a four rather than a five because of these changes."

'The path remains fragile'

The wider industry is similarly measured. Peter Stimson, director of mortgages at MPowered, told The Independent: "The good news is that lenders are reacting to the recent fall in swap rates and bringing out lower-cost products. The bad news is that swap rates remain around 70 basis points above the low point seen before the start of the Iran conflict. They may still go either way, depending on how much longer the crisis remains unresolved."

The Bank of England's Monetary Policy Committee meets on 30 April.  Its read on inflation — still above the 2% target and complicated by the energy price spike — will shape lender pricing strategies for weeks to come. Barclays Research this week published analysis predicting reduced inflation risk and maintained its projection of the base rate holding at 3.75%, though other economists are less sanguine.

Nicholas Mendes, of John Charcol, noted that with HSBC, Santander and now Halifax and Barclays all repricing, NatWest and Nationwide may well follow in the coming days.  More competition can only help borrowers — but the guidance remains not to mistake a calmer fortnight for a calm market.

Rates as of 22 April 2026.