Interest Rates Are Falling, But Moving in 2026 Is About More Than the Monthly Payment

For someone buying at around the average Hertfordshire house price of approximately £530,000, that reduction could mean mortgage repayments falling by roughly £265 per month. Over a year, that equates to more than £3,000 back in household budgets. That is a meaningful saving, but it is only part of the story when it comes to planning a move in 2026.

Here is what is really happening beneath the headlines.

Why the Bank of England Cut Rates

Predicting interest rates over the past year has been difficult. There have been mixed signals and changing expectations, which has left many homeowners unsure about when the right time to act might be.
This most recent rate cut, however, was widely expected.
The UK economy has been showing signs of strain. Growth dipped again in October, and forecasts for a strong rebound remain cautious. Unemployment has risen to 5.1 percent, the highest level in four years, and while inflation has eased slightly, it remains above the Bank of England’s long-term target. Taken together, the need to support economic activity outweighed inflation concerns, prompting the Bank to act.

What This Means Looking Ahead to 2026

Most economists are forecasting further gradual rate reductions through 2026. That points towards improving mortgage affordability for buyers and more flexible remortgaging options for homeowners. However, interest rates alone do not drive the housing market.

Interest Rates Matter, But They Are Not Everything

Every week, we speak to buyers and sellers across our local area. Interest rates matter, but they are only one factor in the decision to move.
Confidence, job security, lifestyle changes, schools, family needs and the broader cost of living all play a part. When confidence drops, people pause. When confidence improves, activity tends to return.

Encouragingly, most respected forecasters expect a steady, sustainable housing market in 2026. The Office for Budget Responsibility and other forecasters anticipate modest house price growth next year, even as mortgage costs ease. That combination of modest price growth and easing mortgage costs is not a sign of a weak market. It is what a healthy, balanced market looks like.

What the Interest Rate Drop Means in Real Terms

To put this into context, let us look at a typical example in Hertfordshire. With the average house price of around £530,000, many buyers might be borrowing approximately £475,000 on a 25-year repayment mortgage. Earlier this year, mortgage rates were commonly around 4.5 percent. Today, many new deals are closer to 3.5 percent, reflecting the fall in the base rate over the past year. At 4.5 percent, monthly repayments on a £475,000 mortgage would be around £2,635. At 3.5 percent, that figure drops to roughly £2,370. That is a saving of about £265 per month, or more than £3,000 per year.

Exact figures will always vary depending on lender, product and term, but this illustrates both why interest rates matter and why they should not be viewed in isolation.

So, What Does This Mean If You Own a Home or Are Thinking of Moving in 2026?

This is the part that really matters. For existing homeowners, easing mortgage costs often improve confidence. That confidence tends to bring more buyers into the market. More buyers generally mean more competition, and competition helps to support prices.

If you are thinking about selling in 2026, that matters. A confident market is a market that moves. If you are thinking about buying, lower rates can improve monthly affordability, but they also tend to increase demand. That is why waiting for rates to fall is not always the advantage it appears to be. A strong market to sell in is usually a more competitive market to buy in. A quieter market to sell in is often where buyers find the best opportunities. It is rare to have both at the same time.

Our Advice Going Into 2026

If you are considering a move in 2026, preparation matters far more than prediction. Our advice is simple. Get ready early. Seasonal patterns still exist, but they are far less pronounced than they once were. Technology has changed how people search, research and make decisions.

Some of the busiest enquiry days we see are when the weather is poor. People are not out and about, they are at home on their phones, scrolling property portals and booking viewings. Those who are prepared tend to move first. And in property, moving first often creates the strongest negotiating position.

Here to Help

If you own a home and are considering selling, or if you are thinking about moving in 2026, now is the right time to get clear, practical advice. If you feel you are not making progress with your current agent, that is also a conversation worth having. If you would like an open and honest discussion about your options, one of our team would be very happy to meet with you and offer straightforward guidance, with no pressure and no obligation.

Figures are for illustrative purposes only and are provided to give a general indication of market conditions. They do not constitute financial or mortgage advice. Exact repayments, rates and affordability will depend on the lender, product and individual circumstances. Buyers should seek independent financial advice before making any commitments.

Here is what is really happening beneath the headlines.

Why the Bank of England Cut Rates

What This Means Looking Ahead to 2026

Interest Rates Matter, But They Are Not Everything

What the Interest Rate Drop Means in Real Terms

Exact figures will always vary depending on lender, product and term, but this illustrates both why interest rates matter and why they should not be viewed in isolation.

So, What Does This Mean If You Own a Home or Are Thinking of Moving in 2026?

Our Advice Going Into 2026

Hitchin Branch

Welwyn Garden City

Stevenage Branch

Lettings

Knebworth Branch

Interest Rates Are Falling, But Moving in 2026 Is About More Than the Monthly Payment

Why the Bank of England Cut Rates

What This Means Looking Ahead to 2026

Interest Rates Matter, But They Are Not Everything

What the Interest Rate Drop Means in Real Terms

So, What Does This Mean If You Own a Home or Are Thinking of Moving in 2026?

Here to Help

Share this article

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Hitchin Branch

Welwyn Garden City

Stevenage Branch

Lettings

Knebworth Branch

Interest Rates Are Falling, But Moving in 2026 Is About More Than the Monthly Payment

Why the Bank of England Cut Rates

What This Means Looking Ahead to 2026

Interest Rates Matter, But They Are Not Everything

What the Interest Rate Drop Means in Real Terms

So, What Does This Mean If You Own a Home or Are Thinking of Moving in 2026?

Here to Help

Share this article

More Articles

Your Local Property Market, Insight December 2026

The “Boxing Day Bounce”, Helpful Signal or Just a Headline?

The Budget 2025 debunked for buyers & sellers

Sign up for our newsletter