UK mortgage rates have climbed sharply again, reaching their highest levels in over 19 months as global uncertainty pushes up borrowing costs.
According to Moneyfacts data, the average two-year fixed rate has risen to 5.75%, up from 4.83% at the start of March, while the average five-year fix has increased to 5.69% from 4.95% over the same period.
Markets are now pricing in the possibility that the Bank of England could raise interest rates to around 4.5% by the end of 2026, although some economists believe rates may instead be held to avoid further economic strain.
Lenders have been rapidly repricing products, with around three-quarters increasing rates or adjusting their offerings in recent days. While some deals are returning to the market, they are coming back at significantly higher levels, leaving overall choice still well below earlier in the month.
The impact on borrowers is already substantial. The cheapest available mortgage rates have jumped from 3.51% to 4.47%, adding roughly £132 per month (around £1,600 a year) to repayments on a typical £250,000 loan.
With markets volatile and funding costs rising, borrowers are being warned to prepare for higher mortgage costs, even if tensions ease in the near term.