UK mortgage rates rise for the first time in 8 months
Average mortgage rates have risen for the first time since February as concern grows over the upcoming Budget, set to be presented by Rachel Reeves on Wednesday 26 November.
This is according to data from Moneyfacts UK, which found that overall average to-and five-year fixed mortgage rates rose month-on-month to 4.98% and 5.02% respectively.
The last time a month-on-month rise in mortgage rates was recorded was in February 2025. The average shelf-life of a mortgage has also increased to 22 days, up from 17 days the previous month.
Most mortgage customers have fixed-rate deals, where the interest rate on the mortgage does not change until a fixed period expires.
At the end of the fixed-rate deal period, which is usually two or five years, a new mortgage rate is chosen to replace the previous fixed rate.
While mortage rates increasing is bad news for borrowers, including first-time buyers, rates have improved significantly since the same time two years ago, where the average two-year fixed rate was 6.47%.
“Borrowers may well be disappointed to see fixed mortgage rates on the rise,” said Moneyfacts finance expert Rachel Springall.
“Volatile swap rates and a cautionary approach among lenders have led to an abrupt halt in consecutive monthly average rate falls.”
“There may be little margin of rate movement from lenders in the coming weeks, prolonging the subdued sentiment. Inflation is expected to peak at 4%, which would then be double the desired 2% target, so any imminent base rate cuts by the Bank of England seem unlikely,” Springall added.
“The repercussions of rising fixed rates and subdued sentiment stifle the Government’s push for lenders to do more to boost UK growth. However, even with a slight dip in product choice across the mortgage spectrum, the combined quantity of deals available to borrowers with a 5% or 10% deposit or equity stands at a 17-year high.”
