General · 23 March 2026
Four UK rate rises expected by financial markets
The cost of fixed-rate mortgages has risen, significantly impacting home loan choices for many borrowers. Financial markets initially expected the Bank of England to increase borrowing costs four times this year, from 3.75% to 4.75%, due to Middle East conflict; however, expectations later shifted to two quarter-point increases, taking rates to 4.25%. On Monday, the average two-year fixed residential mortgage rate reached 5.43%, reflecting an increase from recent figures, with some reports indicating 5.35% as of Monday.
Reported by The Guardian · How we write briefs