Mortgage Rate Hikes to Continue Amid UK Economic Uncertainty

Homeowners in the UK are unlikely to see mortgage rates fall 'any time soon', according to Adam French, head of consumer finance at Moneyfactscompare.co.uk.

The average new mortgage deal has risen by 0.16 percentage points over the last fortnight, from 5.43% to 5.59%, with more than 30 lenders increasing their rates in recent weeks.

This increase means that for someone borrowing £200,000 over a 25-year term, their annual mortgage payments could rise by around £230.

The Bank of England's decision not to change interest rates has been seen as a signal that further rate hikes are possible, with financial markets predicting one or two rate rises before the end of 2026.