Lenders ease off dramatic cuts as brokers see a cautious, controlled rise in enquiries
The sharp fall in mortgage pricing over recent weeks has prompted a cautious return of borrower confidence, even as the market shifts from the frenetic repricing of late autumn into a more deliberate phase. Rates have slipped back towards levels last seen in 2022, and while that has helped re-energise conversations, brokers say the uplift remains measured.
Some lenders are seeing tentative re-engagement from clients who had stepped back earlier in the year. Kevin Gibson, director at Ascot Bridging Finance, said that “whenever rates drop to levels people recognise, like the lows we last saw in 2022, it gives borrowers a bit of confidence,” adding that many are now revisiting scenarios they had previously paused. “It’s not a stampede,” he said, “but there’s definitely more activity and more people wanting to explore their options.”
For mainstream advisers, the rise in enquiries reflects pent-up demand rather than renewed urgency around pricing. Craig Head, director at Mortgage Required, said the current movement is “more to do with the pre-budget bottleneck” than rate enthusiasm, noting that clients coming off sub-2% deals are not treating sub-4% pricing as an irresistible trigger. As he put it, “there isn’t a surge in activity based on rates being sub 4%.”
Katrina Horstead, director at Versed, is also seeing borrowers respond quickly to improving pricing. “Remortgage clients are moving more quickly,” she said, noting that even small rate reductions are prompting people to re-engage. While she sees genuine competition, she added that some best-buy rates remain highly selective, with “a meaningful gap between the headline and the everyday available rate once you factor in fees and borrower profile.” For her clients, affordability is less of a barrier than timing: “It feels less like affordability is the blocker and more that clients are weighing up timing and value as rates edge down.”
Despite the pace of recent reductions, brokers do not believe the market has entered a genuine price war. Gibson acknowledged “some real competition out there,” but described many of the sharpest cuts as attention-grabbing rather than transformational. Behind the headlines, he noted, lenders are making “smaller, more cautious tweaks” and engaging in “a jostle for visibility while still keeping an eye on margins.”
Head takes a similar view, arguing that lenders are positioning for the start of 2026 rather than engaging in aggressive undercutting. “I would avoid the phrase price war,” he said. “It’s much more about the markets pricing in a December Base Rate cut than open warfare.”
Improved pricing has not eased the main constraint for borrowers. Gibson said affordability remains “the sticking point for many clients,” with lenders far more willing to adjust price than criteria. Head agreed that the more meaningful criteria changes took place earlier in the year, noting “significant improvements have been made… not in the recent weeks.” Stress tests and rising living costs continue to limit borrowing power even as sentiment improves.
Volatility has also prompted advisers to lean more heavily on early rate-locking strategies. Gibson pointed out that many lenders now allow downward switches, meaning “locking something in early doesn’t mean you’re stuck.” Head emphasised the role of active monitoring, saying, “We always advise clients to secure a rate at the earliest possible point… making sure your rate can only reduce is sensible financial planning.” He added that the uncertainty has revived client discussions about fixed versus tracker structures.
As lenders pause ahead of the Bank of England’s December decision, brokers report a market that is warming but still constrained. Borrower confidence may be returning, but affordability, not competition, remains the defining barrier as the industry looks ahead to early 2026.
