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Tue, 08 Sep 2026

Tue, 08 Sep 2026 Borrowers expecting mortgage rates to drop have hopes dashed

Major lenders have raised rates on new deals in recent days, leaving many borrowers needing to make a decision.

* Many major mortgage lenders in the UK have increased their rates, with some borrowing £5,000 more per year on a typical five-year deal.
* Analysts are uncertain whether there will be further increases, but advise borrowers to seek advice and plan early.
* The average rate on a new two-year deal is 5.65%, while on a five-year product it's 5.70%.
* Borrowers who secure deals before their current one ends may save thousands of pounds in the long run.
* Global economic uncertainty, particularly since the Iran war began, has pushed up mortgage rates.
* The Bank of England governor said UK borrowers have seen the biggest rise in mortgage rates among G7 countries since the conflict started.