Mortgage rates have been climbing steeply since the conflict in the Middle East commenced. Experts suggest the reason for this is that the likelihood of higher inflation owing to surging oil and gas prices means the Bank of England could conceivably be compelled to raise the base rate in 2026, after its Monetary Policy Committee unanimously voted to maintain rates on hold at 3.75 percent on Thursday.

Many borrowers will understandably be on high alert right now, as each day more rate increases seem to be announced and the expense for people to purchase their first home, or remortgage their existing one, rises. One major lender, Santander, has lifted its rates twice this week alone, to the tune of 0.65 per cent.

Against this grim backdrop, one broker, Stephen Perkins, who is managing director at national mortgage broker Yellow Brick Mortgages, has urged borrowers not to bury their heads in the sand and simply hope and pray that rates fall back down again. That’s because rates falling again is not guaranteed to occur in the near term if inflation genuinely starts to creep up, as many are forecasting.

Stephen said: “People should not assume that the recent spate of mortgage rate increases is the end of it and that rates won’t go higher, because there is every prospect in the current volatile environment that they will. Prices at the pumps are already up noticeably since the war began, with oil prices comfortably above $110 a barrel as of Thursday.

“This will provide upward pressure on inflation and the way the Bank of England controls inflation is by either keeping the base rate higher for longer or raising it. And that’s bad news for borrowers.”

Rather than simply hoping that rates do begin to fall again, Stephen encouraged borrowers to take proactive action, whether they’re looking to purchase for the first time or are remortgaging this year.

He continued: “Savvy borrowers, whether first-time buyers or those remortgaging, will be aware that they can lock into a mortgage rate up to six months before their new mortgage begins. That way, if the lender they are with does raise its rates even more, which is very possible in this extremely uncertain climate, they will be protected from those additional rate increases.

“So, even if you have missed out on the mortgage rates that were available a few weeks ago, you can still take a rate now before they potentially rise even further. You can either lock into a rate yourself directly or through a mortgage broker, who will talk you through the pros and cons of each different mortgage and its suitability to your circumstances.”

Stephen said that borrowers who lock in could “have their bread and eat it”.

He added: “The best bit about locking into a mortgage rate is that, if the situation in the Middle East does calm down and mortgage rates start to head south again, you can easily switch onto a lower rate with the lender you have chosen if its rates suddenly become more competitive. Almost all lenders will allow you to do that.

“You also, of course, have the option to switch to a better deal elsewhere, which is why brokers keep an eye on rates across the whole of the market.

“In other words, locking into a mortgage rate protects you from further rate increases while also giving you the opportunity to get a cheaper rate if one becomes available. For switched-on borrowers, locking into mortgage rates early really does offer the best of both worlds.”