04/06/2026
This is the May edition of WPP Financial Services Mortgage and Protection Update.
👉 Mortgage Market Snapshot – May 2026
May has been another interesting month for the mortgage market, with rates remaining relatively volatile despite the Bank of England holding the base rate at 3.75%.
While many borrowers expected mortgage rates to gradually continue reducing throughout 2026, ongoing inflation concerns and global economic uncertainty have caused swap rates to remain elevated. As fixed mortgage pricing is heavily influenced by swap rates rather than just the Bank of England base rate itself, this has resulted in some lenders increasing fixed rates, while others have made smaller reductions in an increasingly competitive market.
We are also continuing to see a divide between shorter and longer-term products, with some 5-year fixed rates now pricing more competitively than certain 2-year fixes as lenders attempt to attract borrowers looking for longer-term payment stability.
For borrowers, the key message remains the same: planning ahead is essential. Most lenders still allow rates to be secured several months in advance, helping protect against further market movements whilst still often allowing access to improved products if rates reduce before completion.
If your current mortgage deal is ending within the next 6–9 months, now is a sensible time to begin reviewing your options.
👉 UK Economic Update – May in Brief
The Bank of England voted to hold the base rate at 3.75% at its most recent meeting, as policymakers continue to balance easing inflation against ongoing economic uncertainty.
The latest figures released by the Office for National Statistics showed UK CPI inflation falling to 2.8% in April 2026, down from 3.3% in March and moving closer towards the Bank of England’s long-term 2% target. The drop was largely driven by lower housing and household service costs, alongside easing core inflation pressures.
While this was a positive surprise for markets, inflation still remains above target, and uncertainty around future economic growth and global events continues to impact expectations around future interest rate cuts.
As a result, swap rates remain somewhat volatile, meaning mortgage rates may continue to fluctuate despite the improvement in headline inflation.
The housing market itself continues to show resilience, with buyer demand remaining relatively steady, although affordability pressures are still impacting some first-time buyers and home movers.
👉 Mortgage Focus - Why Your Credit Profile Matters More Than Ever
In today’s mortgage market, your credit profile is playing an increasingly important role in the rates and products available to you.
With lenders taking a more cautious approach to affordability and risk, even relatively minor issues on a credit file can sometimes impact the mortgage options available, particularly in a higher-rate environment.
Some of the most common issues we see include:
- Missed or late payments
- High credit card balances
- Unused but open credit accounts
- Incorrect address history or outdated information
The good news is that many of these issues can often be improved well before a mortgage application is submitted.
Even for clients who already own property, checking your credit profile ahead of a remortgage can be extremely beneficial, particularly if your current deal ends later this year.
Simple preparation can often improve lender choice, reduce delays, and potentially help secure a more competitive rate.
If you’d like guidance on how lenders may currently view your credit profile, we’d be happy to help.
👉 Protection Corner - Critical Illness Cover: Protecting More Than Just Your Income
When people think about protection, life insurance is often the first thing that comes to mind. However, one of the biggest financial risks many families face is actually serious illness.
Critical Illness Cover is designed to pay out a tax-free lump sum if you are diagnosed with a specified serious illness covered by the policy, such as:
- Cancer
- Heart attack
- Stroke
- And many other serious medical conditions
The payout can help towards:
- Mortgage repayments
- Household bills
- Time off work
- Medical or lifestyle adjustments
- Providing financial breathing space during recovery
Many people assume serious illness is something that happens later in life, but claims statistics across UK insurers continue to show that serious illnesses can affect people of all ages.
Having the right cover in place can make a significant difference at an already difficult time.
If you’d like to review any existing protection arrangements, or understand what options may be available, we'd be happy to discuss this with you.
👉 Investments for Children
Investing for a child has always been complicated and difficult. The relatively small sums involved make it difficult to have advice. There are practical difficulties too. One Grandad would like to pay £20 a month, and the other one £15 a month. Mum and Auntie say they’ll pay £25 each. It sounds like a Direct Debit and family nightmare. Can this even be done?
Baby Alice wouldn’t be thankful for a cash investment for 18 years. This wouldn’t even keep up with inflation. But growth from a low-cost global index fund would be much more likely to give her something to celebrate when she hits 18. But how can we have all of this, simply and easily?
⭐ A parent of guardian simply goes online and applies for it.
⭐ Aunties, Grandads, anybody can easily be invited to join, to add to the pot.
⭐ We want it to be tax-efficient for the child, so we need an ISA. A Stocks and Shares Junior ISA to be precise, so children can have it, and so we don’t have to invest in cash.
⭐ We just want to plant a small seed now, to achieve great things later.
Rosemount is very pleased to be associated with Beanstalk, who have built this exceptional savings product for children. We thoroughly endorse its simplicity, its family functionality and its low-cost “Index” investment approach. These are values that Rosemount and Beanstalk both share – and another reason why we’d urge you to consider it for children of your family or friends.
The Junior ISA has a platform charge of just 0.50%. This covers the costs of the considerable functionality, the multiple direct debits, the costs of the investment, the IT costs, it covers everything. Part of this 0.5% cost would be shared with Rosemount for the first 2 years only.
If you want to start saving for your children’s future, or review your current arrangements, don’t hesitate to ask me for more information about Beanstalk and how we can get the journey started.
👉 Friends & Family
As you may already know, I grow my small business largely through client referrals. Equally, the more people I can support with their Mortgage & Protection needs, the better for everyone.
If you have any family members, friends or work colleagues who could benefit from my services, please feel free to send them this newsletter, or simply my contact details, so they can get in touch and receive the support they need.
Book a Free Review
👉 Get in touch today to start planning. Book your free 30-minute appointment here:
https://wppfs.co.uk/wppfs-contact-us/
