UK Mortgage Rates Soar as Lenders Hike Costs Amid Global Uncertainty

Nearly all major mortgage lenders in the UK have recently increased their home loan costs. Analysts are uncertain about whether there will be more rate hikes, but urge borrowers to act quickly.

For someone whose five-year deal is ending, a typical new rate could mean paying over £5,000 more per year on their next mortgage, assuming they borrow the same amount of money.

The global economic uncertainty caused by the Iran war has pushed up costs. According to Bank of England governor Andrew Bailey, UK borrowers have seen the largest increase in mortgage rates since the conflict began, apart from Japan.

Someone on a typical two-year deal borrowing £250,000 could expect to pay £120 more per month in mortgage repayments than they would have if they secured their deal at the start of March.