Why mortgage rates are going up, not down

Key Facts

• The last two weeks have seen a string of lenders raise the interest rates on new fixed mortgage deals.
• The answer can be complex, and varied - but here are three reasons: 1. BORROWING IS MORE EXPENSIVE Mortgage rates often pre-empt moves by the Bank of England with benchmark interest rates, also known as the base rate.
• "Right now, fixed-rate mortgages have risen because the cost of borrowing has increased for lenders - and we have a number of factors, like numerous rises in the base rate, to thank for that."
• The graph above shows that mortgage rates are still below last summer's peak, and not accelerating as alarmingly as they did after the mini-budget of 2022.

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