Mortgage "pain" not easing for UK borrowers; average fixed rates climb

Fixed mortgage rates in the UK are already being pushed higher, ahead of the Bank of England base rate decision later this week, according to a financial information website.

On Tuesday, the average two-year fixed homeowner mortgage rate on the market was sitting at its highest level since May 28, while the average five-year fix was at its highest since April 12, Moneyfacts said.

It said the average two-year fixed residential mortgage rate on the market on Tuesday was 5.73%, up from 5.68% on Monday.

The average five-year fixed residential mortgage rate on Tuesday was 5.78%, up from 5.73% on Monday.

The next Bank of England base rate decision will be released on Thursday.

The rate, which currently sits at 3.75%, is expected by some finance commentators to remain unchanged on Thursday, although they have also pointed to the potential for inflationary pressures to prompt rates to increase in the months ahead.

Moneyfacts said some lenders have made mortgage rate hikes twice in September, amid higher swap rates, which are used to price mortgages.

The choice of products has also reduced, with 7,426 homeowner mortgage products on the market counted by Moneyfacts on Tuesday, down from 7,458 on Monday.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: "A second wave of mortgage rate hikes has begun from the major banks in reaction to growing concerns surrounding inflationary pressures."

She added: "It is highly likely other lenders will follow suit to adjust rates, and with some deals withdrawn from the market, it is expected any returning deals could well be priced higher."

Springall said the moves demonstrate "how fixed mortgage rates are not intrinsically linked to adjustments to the Bank of England base rate".

She said that, despite a base rate hold being expected this week: "The mortgage pain shows no sign of easing for those borrowers who cannot yet lock into a new deal, particularly those with a five-year fixed who are not due to refinance until 2027.

"Back in February 2022, there were sub-2% fixed mortgages available, so moving off this rate will be a huge shock for borrowers.

"In the meantime, it is vital that lenders and brokers help customers understand the implications of ending their deal early, such as the early repayment charges."

By Vicky Shaw, Press Association Personal Finance Correspondent

Press Association: Finance

source: PA

Copyright 2026 Alliance News Ltd. All Rights Reserved.