Interest rates to 'rise again in new year' brokers warn

MORTGAGE brokers expect interest rates to stop falling and resume their upward trend by the start of next year.

- By Samuel Norman

Butterfield Mortgages surveyed 300 brokers and 69% said they believed the Bank of England base rate would be higher than the current level of 4.5% by the beginning of 2026.

More than 28% of brokers said they believed the base rate would sit at 5.25% by the start of next year. The survey is in stark contrast to current speculation of further cuts from the Bank of England, which has slashed interest rates three times in the past six months.

Various lenders had already predicted further cuts, with Santander targeting rates of 3.75% by the end of the year.