9 Sep 2026
Are mortgage rates increasing?
We have seen several lenders increase their mortgage rates over the last week. This is a sign that an increase in mortgage rates is likely.
Although nothing is set in stone, the lender repricing, increase in swap rates, and continued economic uncertainty show that borrowers should prepare themselves for a rise in mortgage costs.
Why are lenders increasing their rates?
Below are a few factors contributing to the changes.
Swap rates
It’s no secret that the mortgage market has seen volatility driven by the repricing of swap rates, which have been hit by the ongoing conflict in the Middle East. Swap rates determine the cost of fixed-rate mortgages and reflect future interest rates.
Inflation and energy prices
Energy costs are high due to the current geopolitical volatility. Higher energy costs could push inflation up further later this year, causing uncertainty for interest rates.
The Bank of England’s target is 2% inflation. However, the July report showed that inflation could increase in October and November due to high energy prices.
The Bank of England’s rate decision
The Monetary Policy Committee will meet on Thursday 17th September to announce its next rate decision. The current rate stands at 3.75%, although the last base rate decision saw three members vote for a rise to 4%.
It is important to remember that mortgage rates often increase before the Bank of England makes a decision. This is because lenders don’t wait for the base rate; they price their products on market conditions.
Are rates guaranteed to increase?
We don’t know for sure that rates will increase. However, we believe they are at higher risk of going up than in recent months.
"After a short period of calm, we have again reached a point where a combination of increased global tension and new financial data is threatening to push up Bank Base Rates. The implication of this is that Fixed Rate mortgages are now on the increase again as lenders move to secure their position and protect themselves." - Craig Head, Director at Mortgage Required.
Our advice: don’t sit back and wait
No one can predict the future of the mortgage market, which is why we would advise you to review your mortgage options early and consider speaking to a mortgage broker who can secure you a rate before your current deal ends.
Contact the team at Mortgage Required on 01628 507477.
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