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UK Fixed Mortgage Rates Rise to 5.73 Percent

By Markets Desk · 2026-09-16 · 1 min read
A stack of keys resting on a set of blueprints for a house
Illustration: Tradingbird

Major UK lenders have raised fixed mortgage rates twice this month, pushing the average two-year rate to its highest level since June.

The average two-year fixed mortgage rate in the UK has climbed to 5.73 percent. This represents an increase of 0.89 percentage points since March. Major lenders including NatWest and HSBC have raised prices twice in September.

These increases occur while the Bank of England Base Rate remains at 3.75 percent. The Monetary Policy Committee votes on rates this week. Fixed prices are now moving independently of central bank decisions.

Divergence From Central Bank Policy

Swap rates climbed above 4.70 percent in late September. This triggered the latest round of price hikes. Moneyfacts data shows a typical two-year fixed rate rose from 4.20 percent in December 2025 to 4.92 percent by July 2026.

Rachel Springall of Moneyfacts states that fixed rates are not intrinsically linked to the Base Rate. She attributes the current rise to global inflationary pressures. Building societies like Nationwide have also repriced their deals twice this week.

Monthly Costs Increase For Borrowers

A standard 250,000 pound mortgage over 25 years now costs 131 pounds more per month. This adds 1,572 pounds to the annual outlay compared to March levels. A further 0.25 percent rise would add another 38 pounds monthly.

The Moneyfacts Average New Mortgage Rate stands at 5.68 percent. This is up from 4.90 percent in March. Lenders are withdrawing and repricing products as swap costs fluctuate.

Rush To Refinance Before Maturity

FCA data shows 381,364 mortgages were secured up to six months early in Q2 2026. This follows 499,271 such deals in Q1. The Bank of England estimates 750,000 households pay rates below 3 percent on deals expiring this year.

UK Finance forecasts external remortgaging will reach 77 billion pounds in 2026. Product transfers will add another 261 billion pounds. The average product shelf-life fell to 11 days in August, the shortest since April.

Based on reporting by mpamag.com, compiled by the Tradingbird desk.

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