UK Lenders Raise 2-Year Mortgage Rates to 5.58% as Oil Hits $100
Updated
Updated · bbc.co.uk · Jul 23
UK Lenders Raise 2-Year Mortgage Rates to 5.58% as Oil Hits $100
3 articles · Updated · bbc.co.uk · Jul 23
Summary
Average UK rates on new fixed mortgages climbed back to a month-ago level, with two-year deals at 5.58% and five-year deals at 5.6%, after major banks and other lenders repriced in recent days.
Oil hitting $100 a barrel after fresh strikes and Houthi attacks in the Red Sea pushed up lenders' funding costs and weakened expectations for central-bank rate cuts.
About 100 mortgage deals were temporarily withdrawn as lenders reviewed pricing, signaling that the declines seen through June and early July have largely been reversed.
More than 80% of borrowers are on fixed-rate mortgages, but Bank of England projections show just over 5 million homeowners will face higher monthly repayments by the end of 2028 as deals expire.
The two-year average remains below the 5.9% peak reached during the Iran war in April, but brokers say hopes of a sustained run of mortgage-rate cuts now need rethinking.