May 2026: rates held as energy prices push inflation up

May is traditionally when the spring market is in full swing, and this year is no different, with buyers active and plenty of transactions progressing across South Manchester and the wider area.

Bank of England: rates held

The Bank of England held the base rate at 3.75% on 30 April.

The ongoing conflict in Iran has effectively closed the Strait of Hormuz, through which around a fifth of the world's oil passes, sending energy prices to their highest level in four years. That is pushing inflation back up and clouding the outlook for the rate cuts many had been counting on this year.

The Bank has set out scenarios depending on how the conflict develops. In the most severe, inflation could peak well above 6% in 2027, potentially requiring base rate rises to around 5.25%.

Further rate cuts this year now look less certain than they did a few months ago, and the possibility of rises cannot be completely dismissed. That makes locking in a rate sooner rather than later a sensible move for anyone buying or remortgaging in 2026.

A volatile pricing environment

Mortgage pricing has been volatile in recent weeks. Swap rates, which drive fixed mortgage pricing, spiked sharply during March and April as global events unsettled financial markets, leading some lenders to withdraw products or increase rates at short notice.

More recently, some of that pressure has begun to ease and lenders have started trimming rates again. But the situation remains volatile, and rates can move quickly in either direction, sometimes within days.

Securing a rate sooner rather than later gives you certainty, and if rates improve before you complete, I can often switch you to the better deal.

Why you should never just go to your bank

Whether you are buying for the first time or remortgaging, it can feel natural to approach your own bank. They know you, it feels straightforward, and they will usually have something on offer.

But your bank can only show you its own products. As a broker, I can compare rates from a wide range of lenders, including deals that never appear on the high street. It costs nothing to check, and the difference can easily run into hundreds of pounds a year.

Over 50 five star Google reviews

In April, Mills Mortgage Services passed 50 five star Google reviews from homebuyers across South Manchester and beyond.