UK mortgage rates have increased for the first time since the Easter period, marking a reversal of the recent decline in borrowing costs.
The uptick is driven by renewed fighting in the Middle East, which is reigniting inflation concerns among lenders and pushing up the cost of credit for homeowners.
75% for four consecutive meetings, keeping policy at its lowest level since February 2023.
The Bank of England has held its base interest rate at 3.75% for four consecutive meetings, keeping policy at its lowest level since February 2023.
While the central bank has maintained a steady stance, market expectations for rate cuts in 2026 have been upended by the escalation of the US-Israeli war with Iran.
This geopolitical shock has forced lenders to reassess their risk premiums, leading to higher mortgage deals despite the static base rate.
Prior to the conflict, fixed mortgage rates in the UK had been declining at their quickest pace since October 2024, signaling a significant shift in the housing finance market.