The Bank of England is forecast to cut interest rates three more times this year.
The general consensus on the financial markets is that the base rate will end 2025 at 3.75 per cent, down from 4.5 per cent where it is currently.
This is very likely to begin with a rate cut at the next meeting on 8 May.
Generally, interest rate cuts lead to cheaper mortgage rates, as it reduces the cost of borrowing for banks.
However, experts say they don't expect rates to fall dramatically from their current level.
They say that little improvement is expected because future interest rate cuts are already 'baked in' to fixed rate mortgage pricing.
The average five-year fix is currently at 5.17 per cent and the average two-year fix is at 5.32 per cent, according to Moneyfacts.
Peter Stimson, head of product at the lender MPowered Mortgages says: 'A cut in the Bank of England base rate in May is a nailed-on certainty. Cuts to mortgage rates, not so much.
'The rates that lenders offer to new customers - whether they're remortgaging or buying for the first time - these are unlikely to fall much further in May than they already have.'
There has been a recent wave of rate cuts by mortgage lenders, including by HSBC, Santander and Barclays, these have only been slight.
For many products, it was as little as 0.1 percentage points or less. For example, Santander's headline grabbing two-year fixed for those buying with a 40 per cent deposit is now 3.97 per cent after being reduced by 0.08 percentage points.
On a £200,000 mortgage being repaid over 25 years that means paying just £10 less each month.
Fixed-rate mortgage pricing is largely based on Sonia swap rates.
This is an inter-bank lending rate which shows where banks think mortgage rates will be two or five years in the future, when the mortgage fixed terms end.
Mortgages on offer to customers are very rarely cheaper than their equivalent swap rates.
As of today, five-year swaps were at 3.75 per cent and two-year swaps were at 3.72 per cent.
While Sonia swaps remain down on where they were before Donald Trump sent markets into turmoil with his tariff announcements, they are not dramatically different from where they have been for some time now.
As of 30 July last year, five-year swaps were at 3.78 per cent and two-year swaps at 4.25 per cent.
That was just before the central bank cut interest rates for the first time, down from 5.25 per cent to 5 per cent.
Although Sonia swaps have dipped recently, they remain little different from August and September last year when interest rates were higher than they are now
Since August last year, the Bank of England has cut interest rates three times.
But while base rate has fallen from 5.25 to 4.5 per cent, five-year Sonia swaps are actually higher now than they were in August and September.
Both two-year and five-year swaps have typically hovered not far from 4 per cent during that time - and so too have the lowest fixed-rate mortgage deals.
'Mortgage lenders price their fixed-rate loans according to swap rates, which are a forecast for the future course of the base rate, rather than the base rate of the day,' says Peter Stimson.
'In other words they have already "priced in" a base rate cut in May and may not have scope to reduce their rates again so soon.
'Swap rates currently imply that the base rate will be cut twice more this year after May, and this prediction is already being factored into the rates lenders offer to new customers.'
Babek Ismayil, chief executive and founder of homebuying platform OneDome
Babek Ismayil, chief executive and founder of home buying website OneDome is expecting mortgage rates to remain broadly the same for the rest of the year.
'Unless we see deeper or faster cuts than expected, lenders are unlikely to respond with meaningful rate reductions - particularly if swap rates continue to climb,' he says.
'It’s a clear reminder that swap rates, not just the base rate, are what really drive the cost of fixed mortgages. And right now, they’re signalling caution.
'Volatility triggered by Trump’s new tariffs and broader geopolitical tension has also added to market nervousness.
'While some lenders may continue to tweak pricing at the margins, mortgage rates are likely to stay relatively flat — and could even nudge higher if funding costs keep rising.'
While the Bank of England wants to return inflation back to its 2 per cent target, it will also be wary of slow economic growth and other factors such as rising unemployment.
At present, nobody is suggesting that interest rates will return to anywhere near the rock bottom interest rates we say pre-2022.
For example, economists at Santander are expecting interest rates to remain between 3 and 4 per cent for the foreseeable future.
Peter Stimson head of product at MPowered Mortgages
But economic shocks do happen from time to time and if cutting interest rates is the price that has to be paid to avoid a painful recession, then there is no reason why the Bank of England won't choose to cut rates further than currently expected.
'It's only if things change, for example if it looks like the Bank of England will need to cut the base rate faster to stimulate the economy, that lenders will consider reducing their rates more quickly,' says Peter Stimson.
'For now, the swap rates are clearly pointing towards a total of three base rate cuts in 2025.
'But that clarity could quickly be clouded by bombshell announcements from the White House.
'The only certain thing about Donald Trump is that his erratic behaviour creates huge uncertainty in the money markets.
'We should expect further surprises and changes of direction from the President, many of which could make the future course of mortgage rates in 2025 very bumpy indeed.'