UK mortgage market faces slow and limited rate relief, Oxford Economics says

Oxford Economics forecasts that UK government borrowing costs will decline only gradually, limiting how much mortgage pricing can ease even if the Bank of England shifts toward rate cuts. Funding costs, particularly for longer-term products like five- and 10 year fixes, are expected to stay elevated compared with pre-2022 levels. Slow gilt yields and tighter rate conditions suggest only modest relief for borrowers and limited immediate improvement in mortgage affordability.