More borrowers are acting early, with advisers seeing rising interest in flexible mortgage options
Some mortgage advisers are already seeing clients show greater comfort with short-term uncertainty, as expectations of further rate cuts influence borrowing decisions. For a growing minority, flexibility is starting to outweigh the appeal of locking into fixed rates too early.
Alan MacKenzie of Your Next Step Mortgage said “we’re definitely seeing a bit more appetite for risk from some clients,” adding that “a number are happy to sit on something slightly more uncertain in the short term, in the hope it pays off with further rate drops next year.”
That appetite, he said, is already influencing product choice. “We’ve done more tracker mortgages in the last quarter than I can remember,” MacKenzie said. “Anticipating rate cuts is part of that, but flexibility is a big factor too.”
Trackers are often appealing for structural reasons as well as pricing. “Trackers often allow uncapped overpayments and tend to have lower, or no, early repayment charges, which is attractive for clients who don’t want to feel boxed in,” MacKenzie said.
Looking further ahead, borrower thinking is already extending beyond the immediate rate cycle. “A lot of borrowers are thinking ahead to 2026 as a potential year of change, and choosing products that keep doors open rather than tying them into fixed restrictions too early.”
That adviser experience is reflected in borrower behaviour. Figures from Twenty7tec indicate borrower engagement gathered pace earlier in December and eased by the time the Bank of England confirmed its rate cut, suggesting decisions were shaped before policy was formally announced.
Owner-occupiers accounted for the bulk of activity. Standard residential searches on the day of the decision were up more than 15% year on year, while buy-to-let demand also rose compared with December last year.
The data also points to a modest shift in borrower risk appetite on the day itself. Fixed-rate products continued to dominate overall demand across December, but their share dipped slightly as interest in tracker mortgages increased. Other products that respond more quickly to future base rate movements, including discount, variable and SONIA-linked options, also saw a marginal uplift.
However, the experience is not consistent across the market. Martin Reynolds of Simplybiz Mortgages said the December decision appeared largely priced in, limiting any immediate change in borrower behaviour.
“It feels as if the rate cut was much anticipated and the SWAP market had already factored this in,” Reynolds said. He added that “the slightly downbeat commentary around this may have dampened views on how quickly we can expect the next cut.”
As a result, he said tracker demand has remained steady. “We have not seen an increase in tracker enquiries with our members in the recent period,” Reynolds said, noting that “with most analysts predicting just two more cuts in 2026 getting advice from advisers will be key as to whether they are the best option moving forward vs a fixed rate option.”
Taken together, broker feedback and data suggest December’s rate cut served more as confirmation than catalyst. For advisers, the focus now is suitability - helping clients balance flexibility against certainty as expectations around the next phase of the rate cycle continue to evolve.
