Helping You Stay One Step Ahead This Summer

We are looking forward to enjoying the warmer weather, and as ever, we want to make that as carefree as we can for you. We’ve got some great articles for you to dive into. Hopefully in a sunny spot!

To begin, everyone is talking about the current mortgage rates and world affairs. We’ve created a non-nonsense guide with some helpful starting points. If you are on a variable or tracker rate, or your fixed rate is ending in the next six months, give us a call today. There are a lot of moving parts, and we want the best results for you (tip: forward this email to anyone else you know who needs help! It’s a crazy world out there).

We’ve also touched on some important current news. Did you know probate is currently taking almost two years? (1) Keep reading to find out what you can do about it. Also, the mortgage market is changing, especially for those approaching retirement. Let’s chat and see how we can help you enjoy those years, mortgage-free! If you’re one of the lucky ones heading on holiday this summer, we should check your buildings and contents insurance is up to date. And why workplace private medical insurance is a good idea. Finally, we have some thoughts on that savvy squirrel getting around town. Have you heard about it?

What Do the Current Rates Mean For You?

With so much happening in the world right now, it can be hard to know what it all means for your mortgage. We’ve pulled together the latest on UK interest rates, what’s driving them, and, most importantly, what it could mean for you. As always, if you have any questions, we’re just a message away.

As of May 2026, the Bank of England has held the UK interest rate at 3.75%, the current low point of its cutting cycle, down from a peak of 5.25% in 2023. Earlier this year, two rate cuts were widely expected, with inflation forecast to fall back to the 2% target by spring. That outlook changed sharply following the escalation of conflict in the Middle East and Iran in late February, which sent global oil and gas prices soaring and reignited inflationary pressure across the UK economy.

Key Interest Rate Data (May 2026):
Bank Rate: Held at 3.75% by the Monetary Policy Committee (MPC)
Vote: Eight members voted to hold, one voted for an increase
CPI Inflation: 3.3% as of March 2026, well above the Bank’s 2% target

What This Means for Mortgage Borrowers:

On a tracker or variable rate? Good news, your payments won’t increase for now. But if you’ve drifted onto your lender’s Standard Variable Rate (SVR), it’s worth shopping around, as SVRs remain significantly higher than newly priced deals.

Fixed rate ending soon? Fixed rates are driven by swap rates, not Bank Rate directly, and those have been volatile. Major lenders have been cutting rates in May, but experts warn these cuts may slow or reverse as swap rates push higher. We can ‘lock it in’ for you, and if it drops, we’ll review.

Looking to buy? Buyer confidence remains solid, and enquiries are strong. That said, average purchase mortgage rates are moving back toward 5%, driven by energy price uncertainty and inflation sitting above target. Rate cuts aren’t guaranteed any time soon.

How Could Rates Move From Here?

Scenario 1 – Rates hold at 3.75% through 2026. This is currently the most widely expected outcome. If energy prices stabilise and inflation edges down slowly, the Bank is likely to sit tight for the remainder of the year. For borrowers, this means the mortgage market stays broadly where it is: competitive, but not dramatically cheaper than today.

Scenario 2 – Rates rise. If the conflict deepens and energy prices surge further, inflation could climb well above current levels, potentially forcing the Bank’s hand. Some traders are already pricing in one or two increases, which could push rates toward 4.25–4.5%. For anyone on a tracker or approaching the end of a fixed deal, this would mean noticeably higher monthly payments.

Scenario 3 – Rates are cut. If the conflict eases, energy prices fall back and inflation drops toward target, there is still a path to cuts later in 2026 or into 2027. This would bring some relief for borrowers, particularly those on variable rates, and could unlock more competitive fixed deals.

The next Bank Rate decision is 18 June. With inflation still elevated and the Middle East conflict continuing to shape energy prices, the mortgage market is moving fast. And those who act early secure the best deals. If your fixed rate ends within the next six months, don’t wait for the “right moment”. In a market this unpredictable, waiting could cost you. Rates available today may not be available tomorrow, and if Scenario 2 plays out, the window to lock in a competitive deal could close quickly.

Don’t get left behind. Book a free review with us today, and we’ll make sure you’re in the strongest possible position – whatever happens on 18 June. The sooner you act, the more options you have.

Why the Mortgage Market Is Changing, and What It Means for You

For most of the last century, the mortgage journey followed a fairly predictable path. You bought your first home in your mid-to-late twenties, paid it off over 25 years, and entered retirement debt-free with the house as your reward for decades of hard work. That story is changing, and faster than most people realise.

According to the English Housing Survey 2024–25, the average age of first-time buyers in England is now 34, up from 32 just five years ago, with around 22% of first-time buyer loans in mid-2024 carrying terms of 35 to 40 years.

The knock-on effect is significant. Bank of England data shows that just over two in five new mortgages now have terms extending beyond the borrower’s pension age, and it is estimated that over one million mortgages stretching past retirement have been issued since late 2021. Carrying a mortgage into retirement is no longer an edge case. For a growing number of people, it is simply the reality of how homeownership works in this country.

The good news is that the market is responding. The equity release sector grew 11% in 2025, reaching £2.57 billion in total lending, and people are increasingly using these products for practical reasons rather than lifestyle spending. The most common reason is to clear an existing mortgage or debt, accounting for 26% of cases according to the Equity Release Council.

Retirement Interest-Only mortgages are also gaining traction as a flexible middle ground, and the FCA has acknowledged that some rules may have unintentionally acted as barriers to people accessing the solutions they actually need.

Despite all of this, research from the Equity Release Council found that more than half of households aged 60 and over could fund a better, longer retirement by accessing their housing wealth. Yet most have never had a proper conversation about how to do it. That is the gap we need to close.

If you have a mortgage with years still to run and retirement is closer than it once felt, or you are already past your working years with debt still outstanding, there is almost certainly more you can do than you think. The earlier we talk, the more options we have to work with. Please do get in touch, I would love to help.

A Squirrel. Taxis. And a £10 Million Budget. The Government’s Plan to Get Britain Investing

Yes, this is real. Bear with me.

Right. I wasn’t going to write about this. But then a client forwarded me something and I thought, no, this needs addressing.

The government has launched a financial education campaign. Which, in principle, is a great idea. Long overdue, actually. Years of people parking money in cash ISAs earning next to nothing, a nation largely baffled by the stock market, and genuinely no mainstream effort to bridge that gap. So yes – needed.

The face of this campaign is a squirrel. Called Savvy.

I’m not joking. Billboards. Social media. Television from the autumn. A fleet of “Savvy Cabs”, taxis that give people a free journey if they’re willing to talk about investing on the way. I’ve been in this industry for decades. I’ve seen a lot. But a cartoon squirrel hailing a cab to discuss equity ISAs is, I’ll admit, a new one.

The budget for all this? Up to £8–10 million a year, running for three to five years, backed by up to 20 financial services firms alongside the FCA, the Money and Pensions Service, and the Treasury.

Good money. Interesting choice of mascot.

Here’s the thing. Strip away the squirrel, and the problem this campaign is trying to solve is completely legitimate. The numbers behind it are genuinely sobering.

Seven in ten people in the UK rarely or never talk about investing. Around 44% of people who have savings but no investments , potentially over 10 million people, say they’d be interested in learning more. They’re not opposed to it. They just don’t know where to start, don’t feel it’s for them, or quietly assume it’s something other people do with other people’s money.

Meanwhile, the FCA has previously found that around seven million adults hold more than £10,000 sitting in cash savings. Money that, over time, is slowly being eaten away by inflation without them even realising it.
And the government is making changes that will push people further in this direction whether they’re ready or not. From April 2027, adults under 65 will only be able to put up to £12,000 per year into a cash ISA, with the remaining £8,000 of their £20,000 annual allowance potentially moving into stocks and shares. That’s not subtle. That’s a structural nudge with a deadline.

So where does that leave you?

A billboard with a squirrel on it is not financial advice. It’s awareness raising, and that’s probably the best it can do. Getting someone to think “hmm, maybe I should look into this” is a reasonable first step. What happens after that step is where it gets important. Where getting it wrong actually costs people money.

If your cash has been sitting still for a while and you’ve been meaning to have that conversation, this is probably a decent time to have it.