20/03/2026
Why have mortgage rates gone up when the Bank of England base rate hasn’t changed?
We’ve had a few clients understandably asking this recently, so here’s a clear explanation, and some reassurance.
While the Bank of England base rate often grabs the headlines, mortgage pricing is more heavily influenced by SWAP rates. These reflect what lenders expect interest rates to be in the future, not just where they are today.
• Recently, SWAP rates have risen partly due to increased global uncertainty, including the ongoing conflict in the Middle East, which has made financial markets more cautious.
• When uncertainty rises, markets often price in higher future borrowing costs.
Lenders respond by adjusting fixed mortgage rates, even if the base rate hasn’t changed.
So in simple terms:
Base rate = where we are now
SWAP rates = where markets think we’re heading
A bit of reassurance
• This doesn’t mean rates will keep rising, markets can and do settle.
• Global events can cause short-term spikes, but these don’t always last.
• If you’re already on a fixed rate, you’re protected for now.
• And if you’re approaching renewal, there are still plenty of options available.
Our advice? Don’t panic - plan ahead.
If your mortgage deal is ending in the next 6 months, it's worth reviewing your options early. We can help you plan ahead and retain flexibility in case things improve.
As always, we’re here to guide you through it, no jargon, no pressure, just clear, supportive advice.
