UK Mortgage Rates Rise Despite Bank of England’s Base Rate Cut

In August 2025, the Bank of England made headlines by reducing its base rate from 4.25% to 4%. While one might expect this move to lower borrowing costs across the board, UK mortgage rates have surprisingly increased. This puzzling scenario raises concerns among homeowners and potential buyers. In this article, we explore why mortgage rates are defying expectations, examining factors like swap rates and economic uncertainties.