{"id":140511,"title":"UK mortgage rates reach five-month high amid rate rise fears","publisher":"Share Talk","author":"sharetalk","published":"2026-09-12T10:41:34+00:00","modified":"2026-09-12T10:41:34+00:00","canonical_url":"https://www.share-talk.com/uk-mortgage-rates-reach-five-month-high-amid-rate-rise-fears/","markdown_url":"https://www.share-talk.com/uk-mortgage-rates-reach-five-month-high-amid-rate-rise-fears.md","json_url":"https://www.share-talk.com/uk-mortgage-rates-reach-five-month-high-amid-rate-rise-fears.json","category":"B2B","categories":["B2B","Blogs","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["Bank of England","Brent Crude","Halifax","HSBC","interest-rate increases","Lloyds","Middle East","Nationwide","Red Sea","Santander","UK economy grew"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/09/7c1b5fba-f89f-4a58-a0d2-b1539402e187.png?fit=1727%2C911&quality=80&ssl=1","format":"news","language":"en-GB","content":"UK mortgage rates have climbed to their **highest levels in around five months** as rising oil prices and resilient economic growth fuel expectations that the Bank of England may be forced to increase interest rates again.\n\nThe average **two-year fixed residential mortgage rate rose to 5.67% on Friday**, its highest level since June, according to data from Moneyfacts.\n\nThe typical **five-year fixed rate reached 5.72%**, its highest level since April.\n\nThe latest increase comes as financial markets sharply reassess the outlook for UK interest rates following renewed inflationary pressure from energy markets and stronger-than-expected domestic economic growth.\n\nOil prices have surged amid escalating tensions in the Middle East, increasing concerns that higher energy costs could feed through into broader inflation and make it harder for the Bank of England to keep price pressures under control.\n\nMarkets are now pricing an increased probability of further monetary tightening, with expectations strengthened after the **European Central Bank raised interest rates on Thursday**.\n\nAdam French, head of consumer finance at Moneyfacts, said borrowers were facing another wave of mortgage repricing, with **around 20 lenders increasing rates this week**.\n\nMajor high-street lenders including **HSBC, Halifax, Lloyds, Nationwide and Santander** have all raised mortgage pricing.\n\nFrench said the increase reflects a sharp rise in wholesale funding costs, which determine much of the pricing of fixed-rate mortgages.\n\nThose funding costs have moved higher as investors increase their expectations that other major central banks, including the **Bank of England, could follow the ECB with further rate increases**.\n\nThe renewed rise in mortgage costs will add pressure for homeowners approaching the end of existing fixed-rate deals, particularly borrowers who had been hoping that mortgage pricing would continue to fall.\n\nWith markets now contemplating **multiple Bank of England rate increases over the coming year**, further movements in wholesale swap rates are likely to remain a key driver of mortgage pricing in the weeks ahead."}