An update on mortgage rates

Bank Rate may be at its lowest level since March 2023, but mortgage rates seem to be on the rise again.

In August, inflation was at 3.8% for the second month in a row, nearly double the Bank of England’s target of 2%. The Monetary Policy Committee therefore voted to keep Bank Rate at 4% in September, and many experts are uncertain if another cut is likely in 2025. In response to this uncertainty, many lenders have increased their mortgage rates; the average two-year and five-year fixed mortgages are now at 4.97% and 5.02% respectively. While this is lower than the peaks of 6.86% and 6.35% in the summer of 2023, it’s still high in comparison to October 2021, when some of the lowest rates were below 1%.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Sources:
https://www.thisismoney.co.uk/money/mortgageshome/article-1687576/mortgage-rates.html