25/08/2026
🏠 “The Bank of England hasn’t changed rates… so why have mortgage rates gone UP?”
This is probably one of the biggest misconceptions around mortgages.
Most fixed mortgage rates don’t simply follow the Bank of England Base Rate. They’re heavily influenced by something called swap rates — essentially the financial market’s expectation of where interest rates are heading in the future.
And they can move FAST.
📈 Earlier this year, 2-year swaps moved from around 3.2% to over 4.3%.
Over roughly the same period, the average 2-year fixed mortgage moved from 3.97% to 5.14%.
Without the Bank of England increasing Base Rate.
Why? Because markets are constantly reacting to what might happen next:
🌍 Global conflict and geopolitical risk
📊 Inflation expectations
💷 Government borrowing and spending
📈 Economic data
🏦 Expectations for future Bank of England decisions
That’s also why we sometimes see lenders suddenly announce:
“This product is being withdrawn at 8pm tonight.”
Their own funding costs have changed and the mortgage they priced yesterday may simply no longer stack up today.
👉 So the important bit: if you’re buying, remortgaging or your current deal is ending soon, don’t just wait for the next Bank of England announcement.
Mortgage rates can move before the Bank of England does.
That’s where good advice matters — understanding not just where rates are today, but what’s happening behind them and where the risks are heading next.
If your mortgage deal ends within the next 6 months, feel free to drop us a message. We’ll happily have a look at where you stand. 🏡
01270 750437
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