2025 Mortgage Interest Rates Forecast. Experts estimate that mortgage interest rates should peak near 7% — possibly up to 8% — and gradually trend lower, potentially landing between 5% and 6%. Mortgage interest rate prediction for september 2028.

The bank of england governor has said interest rates are “now gradually on the way down” after holding borrowing costs at 5% in september 2025. House prices have been largely flat over the past 12 months (annual property price rises range from 1.1% to 1.6%) according to the latest.