UK Mortgage Rates Soar to New Highs Ahead of Bank of England Decision

The average fixed mortgage rate in the UK has climbed to its highest level since May, just ahead of the Bank of England's base rate decision on Thursday.

According to Moneyfacts, the financial information website, the average two-year fixed homeowner mortgage rate is now at 5.73%, up from 5.68% on Monday, while the average five-year fix has reached its highest since April 12 at 5.78%, up from 5.73%.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said that 'a second wave of mortgage rate hikes has begun from the major banks in reaction to growing concerns surrounding inflationary pressures.'

Some lenders have made mortgage rate hikes twice in September, amid higher swap rates, which are used to price mortgages.