⚡ Market Update 🏠 Mortgage 5 min read • 15 March 2026

UK Mortgage Rates Are Rising Again — What You Need to Know

Volatility in global markets has pushed UK mortgage rates higher in March. Here is what has changed, who it affects, and what actions homeowners and buyers may want to consider.

⚠️

Situation as of 15 March 2026: Around 470+ residential mortgage products were withdrawn from the UK market in the 48 hours to 11 March, according to Moneyfacts. Average 2-year and 5-year fixed rates have moved back above 5%, their highest levels since mid-2025. If you have a remortgage or purchase completing in the next 3–6 months, it is worth reviewing your options now.

What has happened

Mortgage rates had been gradually falling through 2025 and into early 2026, with some competitive deals briefly dipping below 4% at the start of the year. In early March, that trend reversed.

Rising geopolitical tensions in the Middle East pushed oil and gas prices higher, which in turn raised concerns about future inflation. Financial markets responded quickly — particularly in the swap market, which lenders use to price fixed-rate mortgages.

Swap rates reflect the cost at which banks can borrow fixed-term money in wholesale markets. When swap rates rise, mortgage lenders typically adjust their fixed-rate products within days. This is why mortgage rates can move even when the Bank of England base rate has not changed.

The Bank of England held the base rate at 3.75% in February, and the next decision is scheduled for 19 March. Markets had previously expected a rate cut this spring, but recent inflation risks may delay that.

What the numbers look like right now

Product

Early 2026

Mid-March 2026

2-year fixed (avg)

~4.3%

~5.0%

5-year fixed (avg)

~4.9%

~5.1%

Best 2-yr (60% LTV)

~3.7%

~3.8–4.0%

SVR (average)

~7.2%

~7.1–7.2%

BoE base rate

3.75%

3.75% (held)

Sources: Moneyfacts, market lender data. Rates change frequently and depend on LTV, credit profile and lender criteria.

Who this affects — and how

🏠 Remortgaging soon

If your fixed rate ends within the next 3–6 months, it may be sensible to secure a new rate early. Most lenders allow you to reserve a mortgage offer several months in advance, meaning you can lock in today's rate while keeping flexibility if cheaper deals appear before completion.

🔑 Buying a first home

Mortgage affordability calculations will look tighter at 5%+ rates. If you already have an Agreement in Principle, it is worth checking that your borrowing still fits within the lender's affordability rules. If you are still saving for a deposit, short-term volatility does not change the core maths — your deposit size and income remain the main drivers of affordability.

📋 Already on a fixed deal

If you are mid-fix with more than 6 months remaining, there is usually no need to act immediately. Breaking a fixed mortgage early normally triggers early repayment charges, which can outweigh any rate savings unless the difference is substantial. Monitoring the market and reviewing closer to the end of your fixed term is usually the better approach.

⬆️ Considering overpaying

Higher mortgage rates increase the effective return from overpaying. If your rate is around 5%, overpaying delivers a risk-free return equivalent to that rate. Before overpaying, ensure you have an emergency fund, no high-interest debt, and comfort that you won't need the cash back in the near term.

What might happen next

The outlook is uncertain because the current rate rise is driven largely by global market developments rather than UK domestic data. Two broad scenarios are possible:

If geopolitical tensions ease: Swap rates could fall again, allowing lenders to reduce mortgage pricing.

If inflation risks rise further: The Bank of England may keep interest rates higher for longer, which would keep mortgage rates elevated.

Forecasting mortgage rates is difficult even in stable periods. What matters most is whether today's rate works within your long-term budget.

What to do right now

If your fixed deal ends within 6 months: speak to a mortgage broker and explore securing a rate early.
If you are mid-purchase: check your mortgage offer expiry date and confirm timelines with your broker or lender.
If you plan to buy within 12 months: run affordability calculations using today's mortgage rates, not those from earlier this year.
Don't panic. Mortgage rates around 5% remain below the peak levels seen during 2023, and the housing market continues to function.

💡 BritSavvy note

The default mortgage rate used in BritSavvy calculators has been updated to 4.9%, reflecting current market averages. For accurate projections, always adjust the calculator to the actual rate quoted by your lender or broker.

Run the numbers for your situation