Bad news for homeowners as UK fixed mortgage rates rise yet again
- Average UK fixed mortgage rates have climbed to their highest levels in months as lenders adjust to shifting market conditions.
- Figures from Moneyfacts show the average two-year fixed rate rose to 5.63 per cent, while the average five-year fixed rate increased to 5.68 per cent.
- Finance expert Rachel Springall attributed the adjustments to volatility in swap rates driven by inflationary concerns stemming from the Middle East conflict.
- Mortgage technical manager Nicholas Mendes warned that further selective rate increases are likely as lenders catch up with wholesale market changes.
- Lloyds reported a 0.4 per cent annual drop in average UK house prices in August, marking the first year-on-year decrease since November 2023.
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