UK Mortgage Rates Climb to 5.58% as $100 Oil Revives Rate-Cut Fears
Updated
Updated · BBC.com · Jul 23
UK Mortgage Rates Climb to 5.58% as $100 Oil Revives Rate-Cut Fears
3 articles · Updated · BBC.com · Jul 23
Summary
UK lenders have pushed average new fixed mortgage rates back to a one-month high, with the average two-year deal at 5.58% and the five-year at 5.6%.
Oil hit $100 a barrel on Thursday after fresh strikes and Houthi attacks on Red Sea tankers, lifting lenders' funding costs and weakening expectations for central-bank rate cuts.
The five biggest High Street banks are among lenders raising rates, and about 100 mortgage deals were temporarily withdrawn as firms reassessed pricing.
More than 80% of mortgage borrowers are on fixed-rate deals, but Bank of England projections still show just over 5 million homeowners facing higher monthly repayments by the end of 2028.
The latest rise reverses much of June and early July's easing, though the two-year average remains below the 5.9% peak reached during the Iran war in April.