If you’re looking to buy a home or remortgage in Manchester, one of the biggest questions on your mind is likely to be: Are mortgage rates going up? The truth is, mortgage rates have been anything but stable in recent years, and that unpredictability can feel frustrating, especially when you’re trying to plan ahead.

As a mortgage broker in Manchester, we speak with people every day who are trying to make sense of rising rates and how they could affect their monthly repayments.

Whether you’re just starting your mortgage journey or your current deal is coming to an end, understanding what influences mortgage rates can help you take the right next step.

Why have mortgage rates gone up?

Over the past few years, inflation and economic uncertainty have played a major role in pushing interest rates higher. When inflation rises, the Bank of England typically raises its base rate in response. This base rate influences how much lenders charge for mortgages.

While fixed-rate mortgages give protection from sudden increases, anyone coming to the end of their fixed term may be facing a very different market than when they first secured their deal.

This is one reason why remortgaging in Manchester before your fixed deal ends can be so important. It allows you to lock in a new rate before your lender’s standard variable rate (SVR) kicks in, which is often significantly higher.

How Mortgage Rates Are Set

The mortgage rate that you can access is influenced by a mix of personal and economic factors. Your own situation plays a key part, including:

  • Your credit score and credit history
  • The size of your deposit or available equity
  • Your income and outgoings
  • The type of property you’re buying or refinancing

Lenders assess all of this to decide what rate they can offer you. But the wider economy also matters. Even if your personal circumstances haven’t changed, mortgage rates could rise if inflation goes up or if there’s a shift in the base rate.

That’s why even experienced homeowners can find their next deal comes with higher repayments than before.

Fixed vs Variable Mortgage Rates: What’s the Difference?

If you’re applying for a mortgage or looking to remortgage in Manchester, one of the key decisions you’ll face is whether to go for a fixed rate or a variable rate mortgage.

Each option works differently and comes with its own pros and cons, depending on your plans and how comfortable you are with potential changes in your monthly payments.

Fixed Rate Mortgages

With a fixed rate, your interest rate stays the same for a set period, typically 2, 3, or 5 years. This means your monthly payments won’t change, no matter what happens in the wider economy.

For many buyers and homeowners in Manchester, fixed rates offer peace of mind. You’ll know exactly how much you’re paying each month, which can make it easier to manage your household budget, especially if you’re dealing with other rising living costs.

Variable & Tracker Mortgages

Variable rates, including tracker mortgages, work differently. Your interest rate can change over time, which means your monthly payments can go up or down.

Tracker mortgages usually follow the Bank of England base rate. So if the base rate rises, your mortgage rate will too. If the base rate falls, you could benefit from lower repayments.

Variable rates can sometimes start lower than fixed rates, but they do carry more uncertainty. They’re often better suited to people who are financially flexible or planning to pay off their mortgage quickly.

Date Last Edited: June 20, 2025