{"id":718105,"date":"2026-07-29T23:38:24","date_gmt":"2026-07-29T23:38:24","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/718105\/"},"modified":"2026-07-29T23:38:24","modified_gmt":"2026-07-29T23:38:24","slug":"uk-mortgage-rates-rise-to-highest-level-for-a-month","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/718105\/","title":{"rendered":"UK mortgage rates rise to highest level for a month"},"content":{"rendered":"

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.<\/p>\n

Lenders’ funding costs have increased as markets judge that a prolonged conflict reduces the possibility of interest rate cuts by central banks. <\/p>\n

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.<\/p>\n

Recent projections by the Bank of England<\/a> suggest just over five million homeowners should expect their monthly mortgage repayments to increase by the end of 2028.<\/p>\n

Mortgage rates had been falling as a ceasefire between the US and Iran initially appeared to hold.<\/p>\n

But fresh strikes and Houthi militia attacks on oil tankers in the Red Sea reignited fears over global energy supplies.<\/p>\n

Oil prices hit $100 a barrel for the first time since May on Thursday after several days of increases, stoking fears of higher inflation and a lower likelihood of interest rate cuts.<\/p>\n

Average rate still below Iran war peak<\/p>\n

More than eight in 10 mortgage customers have fixed-rate deals.<\/p>\n

The interest rate on this kind of mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it.<\/p>\n

The average rate on a new two-year fixed deal is 5.59%, according to financial information service Moneyfacts. <\/p>\n

Although it has risen consistently in recent days and is the highest since 19 June, it remains below the Iran war peak in April of 5.9%.<\/p>\n

The average rate on a five-year fixed deal is 5.61%, a level last seen on 7 June.<\/p>\n

HSBC has also announced it will raise its mortgage rates on Monday.<\/p>\n

Click here to see the BBC interactive<\/a><\/p>\n

“It will be incredibly frustrating for borrowers to see rates rise back up to where they were a month ago. The positive progress over recent weeks now feels all but lost, but what the market needs is a period of stability,” said Rachel Springall, finance expert at Moneyfacts.<\/p>\n

She said 100 deals had been pulled temporarily as lenders reconsider their pricing plans.<\/p>\n

She suggested that anyone who needed to remortgage this year could lock in a new deal now with their existing lender ahead of time, but should also seek help from a broker to see whether there are better deals elsewhere. <\/p>\n

“Brokers are an anchor during turbulent times as they can help borrowers keep abreast of changes and be there step by step when going through a mortgage application,” she said.<\/p>\n

Borrowers had been heartened by the regular falls in mortgage rates during June and early July, but brokers say the latest changes are evidence of the uncertainty in the sector.<\/p>\n

“Any borrower hoping for rate cuts to become an ongoing trend will need to rethink,” said David Hollingworth, of L&C Mortgages.<\/p>\n

“Momentum has performed an about turn and now clearly shifted to fixed rates rising in the near term at least.”<\/p>\n

\"A<\/p>\n

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