UK Mortgage Rates Soar to Record High Amid Global Economic Uncertainty

The Bank of England has warned that UK mortgage rates are rising faster than anywhere else in the G7, with borrowing costs increasing by around 0.75 percentage points since the outbreak of the Iran war.

This sharp rise in mortgage rates is leaving families remortgaging today facing hundreds of pounds more in repayments, according to Governor Andrew Bailey.

UK mortgage rates are now typically around 5.7 per cent, up from 4.95 per cent before the conflict began, with a standard five-year fixed mortgage rate now standing at this level.

This means that someone taking out a £250,000 repayment mortgage over 25 years at today's rate would face monthly payments of roughly £1,565, an increase of around £110 more each month than they would have paid at the rate available before the war.