UK mortgage rates rise to highest level for a month
UK mortgage rates have risen to their highest level in a month as market concerns over Middle East tensions dampen expectations for interest rate cuts. Lenders are increasing rates on new fixed deals in response to higher funding costs.
Why it matters
Increased mortgage costs place significant financial pressure on millions of homeowners, potentially slowing the broader UK economy.
Image source, Getty Images By Kevin Peachey Cost of living correspondent Published 2 hours ago UK average mortgage rates have risen back to the level of a month ago as renewed tensions in the Middle East feed through to homeowners.
Lenders' funding costs have increased as markets judge that a prolonged conflict reduces the possibility of interest rate cuts by central banks.
The five biggest High Street banks are among a host of lenders which have increased their interest rates on new fixed deals in recent days.
Recent projections by the Bank of England suggest just over five million homeowners should expect their monthly mortgage repayments to increase by the end of 2028.
Mortgage rates had been falling as a ceasefire between the US and Iran initially appeared to hold.
But fresh strikes and Houthi militia attacks on oil tankers in the Red Sea reignited fears over global energy supplies.
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