What Will Mortgage Rates Be In 2023?

2023 Happy New Year with house model on table wooden background. Banking, real estate, investment, financial, savings and New Year Resolution concepts

What Will Mortgage Rates Be In 2023?

For managing mortgage rates in 2023, it may require a different approach than in previous years due to changing economic conditions and policy decisions. Here are some strategies to consider:

  1. Stay informed: keep an eye on economic indicators such as inflation, employment, and GDP growth that could impact the Bank of England’s base interest rate. In 2023, the Bank of England may also be considering new measures such as “green QE” to support the transition to a low-carbon economy. It’s important to stay informed about these developments and how they could affect mortgage rates.
  2. Consider fixing your rate: while variable rate mortgages may have lower rates than fixed rate mortgages, they come with the risk of rates increasing. In 2023, it may be worth considering a fixed rate mortgage to provide certainty and stability to your payments. Additionally, with the potential for interest rate hikes in 2023, fixing your rate now could lock in a lower rate before it rises.
  3. Reassess your budget: with potentially higher mortgage rates, it’s important to reassess your budget to ensure that you can comfortably afford your monthly payments. Look for areas where you can cut back on expenses, and consider renegotiating or consolidating any outstanding debts to reduce your monthly payments.
  4. Refinance your mortgage: if you have a variable rate mortgage, it may be worth refinancing to a fixed rate mortgage. This could protect you from future rate increases and reduce the total amount of interest you pay over the life of your mortgage. Additionally, if you have equity in your home, you could consider a cash-out refinance to pay off high-interest debts or make home improvements.
  5. Consider making extra payments: making extra payments on your mortgage can help you pay off your mortgage faster and reduce the amount of interest you pay over time. With potentially higher rates, it may be worth considering increasing your payments to pay off your mortgage sooner and reduce your overall interest payments.
  6. Seek professional advice: if you’re unsure about how to manage your mortgage in 2023, it may be worth seeking professional advice from a financial advisor or mortgage broker. They can help you assess your options and make an informed decision about how to manage your mortgage given the current economic climate. Find our preferred partner, Liquid Expat, here.

Managing mortgage rates in 2023 will require careful planning and consideration of the economic conditions and policy decisions that could impact rates. By staying informed, reassessing your budget, and considering your options, you can manage your mortgage effectively and ensure that your payments remain affordable and sustainable over time. Read more about mortgage rates and how to manage them, here.


It is likely that mortgage rates will rise in 2023. The Bank of England has raised interest rates several times in 2022 in an effort to combat inflation. This is expected to continue into 2023, which will push up mortgage rates.

According to a recent survey of economists by the National Association of Realtors, the average mortgage rate is expected to reach 5.75% by the end of 2023. This would be a significant increase from the current rate of 5.25%.

As of the beginning of August 2023, the average mortgage rate in the UK is 7.095% for a 30-year fixed-rate mortgage. This is up from 6.76% previously. The average rate for a 15-year fixed-rate mortgage is 6.15%, and the average rate for a 5-year adjustable-rate mortgage is 7.73%.

Mortgage rates are expected to continue to rise in the coming months, as the Bank of England continues to raise interest rates in an effort to combat inflation.

In mortgage, the term “rate” refers to the interest rate that you will pay on your mortgage loan. The interest rate is a percentage of the amount of money you borrow that you will pay to the lender each year. For example, if you borrow £200,000 and your interest rate is 5%, you will pay £10,000 in interest each year.

The interest rate on a mortgage loan is determined by a number of factors, including your credit score, the amount of money you borrow, and the length of the loan term. Lenders typically offer lower interest rates to borrowers with good credit scores and who borrow smaller amounts of money. They also offer lower interest rates on longer loan terms.

Share This Post

More To Explore

Top 5 Checks for First-Time Renters

Embarking on your journey to find your first rental property can be both exhilarating and nerve-wracking. The excitement of having your own space also comes