Mortgage Structure Update: Q1 2026

One of the hardest things about determining mortgage structure right now is that there is no single correct view we can be 100% certain about. There is genuine uncertainty.

Rates could come down further. At the same time, there are clear offshore risks. In the US, there is a risk that interest rates could be pushed lower at a time when GDP growth is running at around 4.3%. That would be unusual, and it carries the risk of fuelling inflation.

This isn’t a prediction. It’s simply a risk that needs to be considered. And it’s one of the reasons we believe having some longer-term fixed rate coverage, not all, but some, can be a sensible part of mortgage structure.

If using some five-year fixed rates feel expensive right now, that doesn’t mean avoiding longer fixes altogether. For many borrowers, a mix of 1, 2 and 3-year fixed terms can provide a sensible balance between flexibility and protection.

This kind of structure helps to:

• Reduce the risk of refixing everything at the wrong time

• Smooth out future rate changes

• Keep options open as circumstances evolve

It’s not about predicting the future perfectly. It’s about making rational decisions, avoiding unnecessary mistakes, and stacking the odds in your favour.

This is our general view. In Personal finance, the key word is  “personal” as everyone’s situation is different. If you’d like to have a more tailored discussion about mortgage structure and strategy, feel free to reach out.