Homebuyers Braced for Higher Mortgage Rates Amid Interest Rate Stability

Despite the Bank of England holding interest rates steady at 3.75%, homebuyers are expected to exercise caution in the coming months due to rising fixed mortgage rates.

The average five-year fixed homeowner mortgage rate has jumped to its highest level since November 2023, reaching 5.87% on Thursday, according to Moneyfacts.

Several lenders have increased fixed mortgage rates in recent weeks, and experts warn that this trend will continue unless interest rates decline.

'A hold is not a pause button for mortgage costs,' said Stephen Gomez, a mortgage adviser at Wesleyan. 'Fixed mortgage rates are influenced by what financial markets expect to happen next.'