UK fixed-rate mortgages climb to levels not seen since late May and mid-April
Average two-year and five-year fixed mortgage rates in the UK rose to their highest points since May 28 and April 12, respectively, ahead of the Bank of England’s upcoming rate decision.
Moneyfacts reported that on Tuesday the average two-year fixed residential mortgage rate reached 5.73%, up from 5.68% the day before, while the five-year fixed rate rose to 5.78% from 5.73%. Both figures represent the highest levels since May 28 for the two-year term and April 12 for the five-year term. The Bank of England’s base rate, which stands at 3.75%, is slated for a decision on Thursday, and most commentators anticipate no change, though inflation pressures could prompt future hikes.
Several lenders have already implemented two rounds of rate increases in September, driven by higher swap rates that influence mortgage pricing. Meanwhile, the total count of homeowner mortgage products slipped to 7,426 from 7,458, reflecting a narrowing market. Finance expert Rachel Springall warned that the trend shows fixed-rate mortgage pain persisting for borrowers unable to lock in new deals, especially those with five-year fixes expiring in 2027.
Why it matters
Rising mortgage rates increase borrowing costs for UK homeowners and signal pressure on the housing market.
How this story developed
- Sep 3 Coventry Building Society to Raise Fixed Mortgage Rates for All Customers Starting Monday
- Sep 8 Average fixed‑rate mortgage figures have risen to 5.63% (two‑year) and 5.68% (five‑year) while house‑price growth turned negative in August.
- Sep 11 July 2026 data show the UK economy grew by 0.4%, beating expectations of no change, driven mainly by services and AI-related activity.
- Sep 11 Andy Burnham entered No 10 on 20 July.
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