Earlier this month the Governor of the Bank of England, Mark Carney hinted that interest rates could rise as early as the end of this year.
In his speech Mr Carney said that it didn’t seem unreasonable that once normalisation begins, rates will increase slowly and gradually from their current level of 0.5 per cent to around 2.25 per cent – still way way below the historical average interest rate of 4.5 per cent.
Well Mr Carney, it doesn’t seem unreasonable to me either, I remember the 90’s when rates peaked around 15.5%!
Although the Monetary Policy Committee usually consider economic activity, household debt and core inflation when adjusting interest rates. Throw the cost of oil bringing deflation down, trouble in the Eurozone and the distance between the two main parties here at home into the mix and I am not sure Mr Carney will get the normalisation he is looking for by Christmas.
In the meantime, its business as usual for the country’s major mortgage lenders, who seem to have largely ignored the warning. Fixed rates remain stubbornly low at circa 2% for 2 years and 3% for 5 years. If you are not intending on changing your house or spouse any time soon, I would personally recommend Barclay’s 10 year fixed rate which comes in at an amazing 2.99%!
However, if you are still on a variable rate, you have been warned!!
For more information or to speak to a mortgage advisor contact us on 01628 507477.
Recent posts
Housing Secretary Angela Rayner has announced a new measure to protect leaseholders in England and Wales from high fees and poorly regulated property management companies.
Saturday 26th September, Andy Burnham announced a new equity loan scheme called “Your First Home”. The scheme, which will be confirmed at next month’s budget, is aimed at first-time buyers looking to purchase a new-build property from a developer signed up to the scheme.
Losing your job or finding yourself ‘between jobs’ is, unsurprisingly, a stressful place to be. Keeping a cool head and taking action is important.
Best UK Mortgage Rates this Week
8 days ago
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Flats 40% cheaper to buy than houses
12 days ago
This price gap between the cost of houses and flats is the biggest it has ever been. Houses are now costing 1.7 times more than a flat, which is 0.4 times higher than 10 years ago
Take a look at our list of houses vs. flats per area.
Are mortgage rates set to increase?
22 days ago
We have seen several lenders increase their mortgage rates over the last couple of weeks. This suggests mortgage rates are likely to rise.
Although nothing is set in stone, lender repricing, rising swap rates, and continued economic uncertainty suggest borrowers should prepare for higher mortgage costs.
AI-altered images put off over half of buyers
24 Aug 2026
According to data from House Buyer Bureau, where over 900 UK homebuyers were surveyed, 54% of people said that they immediately ruled out digitally enhanced property listings.
April Mortgages offer 7x Income Mortgage
13 Aug 2026
April Mortgages - only accessed via a mortgage broker - offers first-time buyers, renters, and home-movers the option to borrow up to 7 times their income on its longer-term mortgages.
More information
Trusted by
