Why are UK mortgage rates rising now?

Fixed deals are priced from swap rates, which jumped as markets priced stickier inflation and energy risks linked to Middle East tensions. That raised lenders’ hedging costs, so banks including HSBC, Nationwide and Coventry lifted some fixes by up to 0.25%. It also reflects fewer near-term Bank of England cuts priced before the 19 March meeting.

Should I lock a fixed rate before the Bank of England meeting?

If you complete within six months, consider securing an offer now to protect against further moves. Many lenders let you switch to a cheaper rate if pricing falls before completion. Balance certainty against flexibility, compare total costs including fees, and match term length to your plans and risk tolerance.

Will mortgage rates fall if the BoE cuts later this year?

Mortgage pricing follows swap rates, which reflect expectations for future Bank Rate and inflation. If inflation cools and markets price quicker cuts, swap rates can fall and lenders may reduce fixed deals. If inflation stays sticky or energy prices rise, swap rates may hold up, limiting how far mortgage rates can drop.

How do swap rates affect my fixed mortgage?

When you fix, your lender hedges interest-rate risk in the swap market. If swap rates rise, that hedge costs more, so fixed-rate mortgages tend to increase. If swap rates fall, funding becomes cheaper and lenders can cut pricing. This link means mortgage rates can change even without an immediate BoE decision.

Global Market Insights

UK Mortgage Rates March 08: Lenders Hike Fixed Deals as Swap Rates Surge

ByDanny Kontos March 8, 2026March 8, 2026

Mortgage rates are moving higher in the UK after a jump in swap rates. HSBC, Nationwide and Coventry are lifting fixed deals by up to 0.25%, citing inflation and energy price risks linked to Middle East tensions. With the Bank of England meeting on 19 March, markets now see fewer near-term cuts. We explain what is driving UK mortgage rates, how it affects borrowers and housing activity, and what investors should watch in the weeks ahead.