general
UK average mortgage rate rises to 5.50%, highest since August 2024
Moneyfacts data shows mortgage costs have jumped as lenders reprice products and markets price in further Bank Rate rises amid rising energy and inflation risks from the Middle East conflict.
Mar 26th 2026 · United Kingdom
Insights
- Moneyfacts reports the average UK mortgage rate at 5.50%, the highest level since August 2024.
- Borrowing £250,000 over 25 years now costs typically more than £1,075 extra per year compared with a few weeks ago.
- The average two-year fixed rate rose to 5.56% and the average five-year fixed rate rose to 5.54% since the start of March.
- Money markets price about 64 basis points of Bank Rate rises by December, implying two quarter-point hikes.
- Conflict in the Middle East has pushed up energy prices and lenders have repriced mortgages, weakening UK consumer confidence.
Sources
- War on Iran ‘making us all poorer’ but RBA may need to hike interest rates again, official warns www.theguardian.com
- Banks face a new triple threat: Iran, AI and private credit www.ft.com
- Average UK mortgage rate rise to highest since August 2024 as Iran war pushes up borrowing costs – business live www.theguardian.com
- Auction clearance rate slumps to 57% nationwide as interest rate hikes prompt Australians to sell www.theguardian.com
- England’s housing at most affordable since 2015, official data shows www.ft.com
- What are today's mortgage interest rates: March 26, 2026? www.cbsnews.com