UK Homeowners Hit by Mortgage Rate Hikes as Cheap Rates Vanish

Hundreds of thousands of homeowners in the UK are facing significant mortgage rate hikes as cheaper rates disappear from the market.

According to Bank of England figures, 750,000 households with fixed-rate mortgages set to expire this year are currently paying rates below 3%.

With these cheaper rates vanishing, the average homeowner is facing an average repayment increase of around £170 per month.

The rate hikes are attributed to renewed unrest in the Middle East, which has caused lenders to increase mortgage prices due to higher swap rates.

Lenders began increasing mortgage rates in July, with the average two-year fixed rate rising by 0.11% to 5.63%, and the average five-year fix increasing by 0.14% to 5.66%.