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 remains high compared to October 2021, when some of the lowest rates were below 1%.
Your home may be repossessed if you fail to keep up with your mortgage repayments.
Sources:
https://www.thisismoney.co.uk/money/mortgageshome/article-1687576/mortgage-rates.html
