Average UK Mortgage Rates Climb to Highest Levels Since Early Last Year

UK mortgage pricing has moved higher since early March, with the sharpest pressure falling on borrowers who need low-deposit deals.

Lenders have been removing products and lifting rates, a shift linked in the source material to heightened market volatility tied to geopolitical developments involving the US , Israel , and Iran .

What changed in the mortgage market

More than 200 mortgage products aimed at buyers with smaller deposits have been taken off the market since early March.

On one Saturday alone, 52 such deals were withdrawn, described as the biggest single-day reduction since the UK’s 2022 mini-Budget period.

Where rates are now

The average rate for a two-year fixed mortgage across the market has risen to 5.51% , up from 4.83% at the start of March.

That level is stated to be the highest since February of last year, underscoring how quickly pricing has reset over a short window.

Five-year fixed pricing has also increased, with the average moving to 5.52% from 4.95% over the same period.

The source material says this is the highest since July 2024 , indicating that longer-term fixes have not been insulated from the repricing.

Impact on first-time buyers and low-deposit borrowers

For a two-year fixed mortgage with a 5% deposit, the average rate is now above 6% .

On a £250,000 loan over 25 years, that is described as roughly £1,200 a year more expensive than a comparable deal available in early March.

Why volatility matters for pricing

Before the recent turbulence, financial markets had been expecting UK interest-rate cuts this year, which would typically reduce lenders’ funding costs and feed into cheaper fixed-rate mortgages.

The source attributes the change in expectations to geopolitical tensions, which have contributed to a more unsettled market backdrop and a faster shift in mortgage availability and pricing.

Risks, unknowns, and practical guidance

How long the current repricing lasts is uncertain, because it depends on market conditions and the path of interest-rate expectations, both of which can change quickly.

With products being pulled at short notice and competitive options becoming harder to find, borrowers are advised in the source material to seek independent financial advice.