If you are buying, moving or remortgaging in 2026, the latest inflation figures could have an important bearing on your mortgage options.
The Office for National Statistics has reported that UK CPI inflation rose to 3.3% in March 2026, up from 3.0% in February. This increase was driven mainly by transport costs, particularly motor fuels, while food inflation also picked up, while services inflation also remained elevated at 4.5%. (1)
In simple terms, price pressures in the wider economy remain stubborn, and that matters because inflation is one of the biggest factors the Bank of England considers when deciding what to do with interest rates.
When inflation stays above target, the Bank of England is usually more cautious about cutting rates too quickly. At its March 2026 meeting, the Bank held Bank Rate at 3.75%, with its next decision due on 30 April 2026.
The Bank also warned that higher global energy and commodity prices could continue to feed through into household bills and business costs in the near term.
That does not automatically mean mortgage rates will suddenly spike, but it does mean lenders are likely to stay careful. Even when the Base Rate is unchanged, mortgage pricing can still move if lenders expect inflation to stay higher for longer or if funding costs become more volatile. That is why borrowers often see fixed mortgage rates shift before the Bank of England actually changes its headline rate.
According to the Bank of England, the average effective rate on new secured lending to individuals was 4.10% in February 2026, slightly up from 4.09% in January. (2)
The rate on the outstanding stock of mortgages was 3.95%. These figures are useful because they reflect the average rates actually being paid across UK banks and building societies, rather than just headline product marketing.
Alongside those official averages, lender pricing shows there are still competitive options available — but also plenty of variation depending on deposit size, fees and borrower profile.
For example, HSBC’s currently published switch rates include a 2-year fixed standard at 4.69%, a 3-year fixed standard at 4.69%, and a 5-year fixed standard at 4.70% at 60% loan-to-value, while its 10-year fixed standard is listed at 5.07%. (3)
That is a good reminder that the “best” rate on paper is not always the best overall deal once fees and flexibility are taken into account.
So, while the market is still far more stable than it was at the height of the rate shock, it is fair to say that the latest inflation news makes a rapid drop in mortgage pricing less certain in the short term.
For buyers and homeowners alike, preparation matters more than trying to second-guess every Bank of England move.
This is where the picture becomes especially relevant for buyers and homeowners across Greater Manchester and Cheshire.
The latest official local data shows Stockport remains one of the stronger markets in the region, with an average house price of £311,000 in January 2026, up 4.0% year on year. Tameside stood at £212,000 in January 2026, showing more modest but still positive growth.
For Cheshire, the official data is split by local authority rather than treated as one single market. Cheshire East had an average house price of £300,000 in January 2026, up 3.0% annually, while Cheshire West and Chester was also among the higher-value North West markets in the latest official release.
And for the wider Greater Manchester picture, the latest ONS local pages show Manchester at £251,000 in February 2026, up 3.9% year on year, while Salford stood at £224,000, up 1.8%.
Together, these figures underline an important point: although national economic conditions have become more uncertain, many local property markets across Greater Manchester and the North West continue to show strong resilience.
That resilience is encouraging, but affordability still matters. A change of even a few tenths of a per cent on a mortgage rate can make a noticeable difference to monthly payments, especially for first-time buyers or anyone coming off a lower fixed deal agreed a few years ago. That is why acting early can make such a difference.
The key takeaway is not panic — it is planning.
If you are buying this year, now is a good time to understand exactly what you can borrow, what your monthly payments could look like, and whether a fixed or variable product is likely to suit you best.
If you are already on a mortgage deal that ends in the coming months, reviewing your options early could help you avoid unnecessary pressure later on.
In a market like this, the right advice can be just as important as the right rate. Every lender assesses borrowers differently, and the most suitable mortgage will depend on your deposit, income, property type, plans for the future and appetite for certainty.
A deal that looks attractive online is not always the one that works best in practice.
Whether you are a first-time buyer, moving home, investing, or coming to the end of your current deal, our team at Edward Mellor Mortgages can help you make sense of the latest market changes.
We know the local market across Stockport, Tameside, Greater Manchester and Cheshire, and we understand that every buyer and homeowner’s situation is different. With inflation still above target and mortgage pricing likely to remain sensitive in the weeks ahead, getting tailored advice early could help you secure the right deal and move forward with confidence.
Thinking of buying or remortgaging in 2026? Speak to Edward Mellor Mortgages today and let us help you find the right option for your circumstances.
This article is for general information only and does not constitute financial advice. Your home may be repossessed if you do not keep up with repayments on your mortgage.
Sources
1 – Office for National Statistics, UK inflation and local house price data.
2 – Bank of England, March 2026 monetary policy decision and February 2026 effective mortgage rates.
3 – HSBC UK mortgage rate tables and reporting on recent lender repricing.
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