UK Mortgage Rates Rise as Middle East Conflict Raises Inflations Fears
- Mar 6
- 1 min read
Why this matters:
Rising mortgage rates could increase borrowing costs for homebuyers and households across the UK.
Summary:
UK lenders begin raising mortgage rates amid economic uncertainty linked to Middle East conflict.
Nationwide Building Society increases some mortgage rates by up to 0.25%.
HSBC UK and Coventry Building Society also announce rate increases.
Lenders reacting to rising swap rates reflecting expectations for higher future interest rates.
Market fears inflation could rise due to higher global energy prices.
Higher inflation may delay planned interest-rate cuts by the Bank of England.
Average two-year fixed mortgage rate now 4.84%, according to Moneyfacts.
Average five-year fixed mortgage rate currently 4.96%.
Experts advise borrowers considering fixed deals to secure rates sooner due to volatility.
Next interest rate decision from the Bank of England scheduled for 19 March.
What’s next:Markets will monitor inflation and energy prices as the Bank of England considers future interest rate decisions.
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