Interest rates don’t just matter to economists, they shape affordability, confidence and property prices across the UK and here on the Isle of Man.
A quick look back
- 2009: Rates dropped to 0.5% after the financial crisis.
- 2020: Historic low of 0.1% during COVID.
- 2023: Peaked at 5.25% to curb inflation.
- 2025: Cuts in February, May and August brought the rate down to 4%.
Why it matters
- Higher base rates = more expensive mortgages.
- Lower base rates = cheaper borrowing and more flexibility.
Fixed vs Variable: A safer landscape
Today, 96% of borrowers fix their mortgage, with nearly half choosing five-year terms. This has made the market more stable, property prices dipped just 5% in 2023 compared to much bigger drops in past recessions.
What’s happening now
As of September 2025, the base rate is steady at 4%. Mortgage rates haven’t fallen dramatically but are holding firm, with some stress tests easing to help first-time buyers.
What’s next?
Forecasts suggest rates could fall to 3.5% in 2026. For buyers and homeowners, that means opportunity. At Koops & Co, we’ll help you cut through the noise. Whether you’re buying, selling or remortgaging, we’ll connect you with trusted advisors and keep the process simple, clear and stress-free.
