UK inflation 3% is a timely topic for anyone considering a mortgage or remortgage in the UK. Below: why the fall in inflation matters and what it can mean for borrowers.
Contents
What happened to inflation?
UK inflation 3% — that is the figure for January 2026 over the last 12 months, 0.4% lower than in December (3.4%). The figures are published by the Office for National Statistics (ONS). The largest downward contributions came from transport and from food and non-alcoholic beverages.
In early February the Bank of England kept the base rate at 3.75%. Inflation is expected to return to the 2% target in spring, and if the trend continues there could be further rate cuts during the year.
Why it matters for mortgages
When inflation falls, the central bank has more room to cut the base rate. That affects how banks fund lending and, in turn, mortgage rates for borrowers. Lower inflation can also mean affordability “stress tests” become slightly easier — so some borrowers may find it easier to get the amount they need.
UK inflation 3% and the path towards the 2% target allow lenders to plan funding with less volatility, which can support more predictable mortgage conditions over time.
This is not a guarantee: every situation is different, and rates depend on the lender, term and product. But for anyone who has been putting off a decision because of high rates or uncertainty, the current picture is a good reason to review your options.
What might happen next
Market commentators note that UK inflation 3% and its decline strengthen the case for a possible cut in the base rate at the next meeting in March. That could feed through over time into mortgage pricing: more stable or lower rates on new deals and remortgages. Lenders typically react cautiously, but the trend towards lower inflation and rates is already shaping expectations for borrowers and first-time buyers.
For those coming off historically low rates (“mortgage cliff”), the move onto today’s deals may be less sharp than during last year’s peaks.
What it means for you
UK inflation 3% and the downward trend are a reason to revisit your plans. If you are considering a first home, moving or remortgaging, it’s worth keeping an eye on inflation and rate data and checking from time to time what amount and what terms you might get. No one can promise a specific rate or timing — but understanding the big picture helps you make an informed decision.
Below you’ll find the link to the original article and the option to book a consultation to go through your situation based on your income, deposit and goals.
When to check your options
If you want to understand how lower inflation and current rates apply to your situation (first home, move or remortgage), we can discuss it in a one-to-one consultation — we’ll look at your income, deposit and find options that suit you.
|
📌 Original story (sources):
Mortgage Strategy (inflation 3%, ONS, February 2026):
https://www.mortgagestrategy.co.uk/news/inflation-falls-to-3-0-in-january-ons/
Inflation data: Office for National Statistics (ONS), UK.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The information is general and does not constitute personal financial advice. Lending criteria, rates and product availability depend on your situation and on UK lenders’ requirements.
