The mortgage market has seen a noticeable shift in recent months, with borrowing costs increasing and affordability becoming a growing consideration for many buyers.
While much of the public focus remains on the Bank of England’s base rate, mortgage pricing is influenced by a range of wider economic factors. Political uncertainty, global events and fluctuations in financial markets have all contributed to changes in lender pricing throughout 2026.
For buyers, homeowners and landlords alike, understanding these influences is key to making informed property decisions.
Why Have Mortgage Rates Increased?
One of the most common questions we hear is:
“If the Bank of England hasn’t increased the base rate, why have mortgage rates gone up?”
The answer lies largely in something known as swap rates.
Swap rates represent the cost at which lenders secure funding for fixed periods and play a significant role in determining the pricing of fixed rate mortgages. When swap rates rise, lenders’ funding costs increase, which often results in higher mortgage rates being passed on to borrowers.
Recent geopolitical tensions, ongoing uncertainty across global financial markets and concerns surrounding the UK’s economic outlook have all contributed to volatility in swap rates. As a result, many lenders have adjusted their mortgage pricing over recent months.
What Does This Mean for Buyers?
Compared with rates available towards the end of 2025, many fixed rate mortgage products are now between 0.75% and 1.00% higher.
Naturally, this has affected affordability, particularly for first time buyers, those purchasing with smaller deposits and borrowers looking to maximise their borrowing capacity.
That said, demand remains resilient. Serious buyers are still actively moving, but many are taking longer to make decisions and placing greater emphasis on understanding exactly what they can afford before committing to a purchase.
Although rates have increased compared with late 2025, competition between lenders remains strong and there are still a number of attractive products available for well qualified borrowers.
Current Mortgage Rate Snapshot
As of June 2026, indicative fixed rates include:
First Time Buyers
- 95% Loan to Value (5% deposit): from 5.15%
- 90% Loan to Value (10% deposit): from 4.79%
- 60% Loan to Value (40% deposit): from 4.37%
Home Movers
- 95% Loan to Value (5% deposit): from 5.04%
- 90% Loan to Value (10% deposit): from 4.81%
- 60% Loan to Value (40% deposit): from 4.35%
Remortgages
- 90% Loan to Value (10% equity): from 4.99%
- 75% Loan to Value (25% equity): from 4.61%
- 40% Loan to Value (60% equity): from 4.50%
Buy to Let Purchases
- 75% Loan to Value (25% deposit): from 4.89%
- 60% Loan to Value (40% deposit): from 4.81%
Buy to Let Remortgages
- 75% Loan to Value (25% equity): from 4.66%
- 60% Loan to Value (40% equity): from 4.69%
These figures are intended as a guide only and are subject to lender criteria, individual circumstances and product availability. The most suitable mortgage is not always the one with the lowest headline rate, which is why professional advice remains important when reviewing your options.
Looking Ahead
Forecasting interest rates remains challenging.
Although inflation has eased from previous highs, economic uncertainty continues to influence market expectations. Mortgage lenders often react to anticipated future changes rather than waiting for official Bank of England announcements, meaning mortgage rates can move quickly even when the base rate remains unchanged.
Many lenders and market commentators expect rates to remain relatively volatile throughout the remainder of 2026, making it important for borrowers to review their options early rather than assume today’s rates will still be available in several months’ time.
A Message for Homeowners Approaching the End of a Fixed Deal
For anyone with a mortgage product due to expire within the next six months, now is the time to start reviewing options.
Many lenders allow borrowers to secure a new mortgage deal up to six months before their current product ends. This can provide protection against future rate increases whilst still allowing flexibility should a more competitive product become available before completion.
In the current market, being proactive can make a significant difference.
The Impact on the Property Market
For estate agents, vendors and landlords, ensuring buyers are financially qualified from the outset has never been more important.
As affordability becomes a greater consideration, buyers who have already sought mortgage advice and understand their borrowing position are more likely to proceed with confidence. This helps reduce delays, strengthen chains and minimise the risk of transactions falling through.
While the market has become more price sensitive, committed buyers remain active and good quality property continues to attract strong levels of interest when priced correctly.
Expert Advice Matters
Market conditions can change quickly, and securing the right mortgage is no longer simply a case of finding the lowest rate.
Whether you’re purchasing your first home, moving property, refinancing an existing mortgage or expanding a buy to let portfolio, obtaining professional advice early can help you understand your options and plan with confidence.
Harvey Bishop is a Mortgage & Protection Adviser with Newman Knight & Co, based in Hitchin. Newman Knight & Co has over 30 years of combined industry experience and advises clients across Hertfordshire, Bedfordshire, London and the surrounding areas on residential mortgages, buy to let lending and protection planning.
If you would like a no obligation review of your mortgage arrangements, are approaching the end of a fixed rate deal, or simply want to understand what options are available to you in the current market, Harvey and the team at Newman Knight & Co would be delighted to help.
