UK Lenders Hike Fixed Mortgage Rates as Base Rate Remains Unchanged
Major UK lenders have raised fixed mortgage rates for the second time this month, widening the gap between fixed pricing and the Bank of England's Base Rate (BBR), which has held at 3.75% since July.
NatWest, Santander, HSBC, Lloyds Bank, and TSB have increased selected fixed rates after swap rates climbed above 4.70%. The Bank's Monetary Policy Committee is due to vote on rates this week.
According to Moneyfactscompare.co.uk, the average two-year fixed rate has risen by 0.89% since March 2026, from 4.84% to 5.73%, adding £131 a month or £1,572 a year to a £250,000 mortgage over 25 years.
Financial Conduct Authority (FCA) data shows that 381,364 mortgages were secured up to six months ahead of maturity in Q2 2026, down from 499,271 in Q1. The Bank of England estimates that 750,000 households with a fixed rate expiring in 2026 currently pay rates below 3%.