Bank of England Faces Pressure to Raise Interest Rates Amid Rising Inflation

UK inflation accelerated to 3.1% in August, exceeding the Bank of England's 2% target and putting pressure on the Monetary Policy Committee (MPC) ahead of its base rate decision.

The Consumer Prices Index (CPI) annual rate rose from 2.9% in July, prompting warnings that mortgage borrowing costs will remain under upward pressure.

Major lenders have already raised mortgage rates twice this month, and swap rates have climbed sharply, making it difficult for borrowers to navigate the market.

Risk-free insurance against further hikes in borrowing costs is available through reserving rates with an early application, according to Rob Clifford of Stonebridge mortgage and protection network.