UK mortgage rates edge higher as lenders prepare further hikes and house prices slip

Fixed‑rate mortgage averages are now 5.63% for two‑year terms and 5.68% for five‑year terms. Coventry Building Society said it will lift rates on all its fixed‑rate mortgage products starting Monday. The moves come as swap rates and gilt yields have risen amid inflation worries linked to Middle East tensions and US‑Iran strains. Lloyds reported a 0.4% year‑on‑year decline in average UK house prices for August, the first drop since November 2023. Mortgage advisers are urging borrowers with contracts expiring within six months to secure deals now and consider overpayments or alternative products.