The Bank of England’s base rate may now be at its lowest level since March 2023, but mortgage rates are beginning to rise again.
In August, UK inflation held at 3.8% for the second month in a row — almost double the Bank’s 2% target. As a result, the Monetary Policy Committee voted to keep the base rate at 4% in September, and many financial experts are unsure whether further rate cuts will happen in 2025.
This uncertainty has led some lenders to increase their mortgage rates.
👉 The average two-year fixed rate now sits at 4.97%
👉 The average five-year fixed rate is around 5.02%
While these figures are lower than the peaks of 6.86% and 6.35% in summer 2023, they remain much higher than the record-low rates seen in 2021, when some deals were below 1%.
If you’re based in Newcastle, Cramlington, or across Northumberland, now could be a good time to speak to a local mortgage advisor to review your current deal and explore your options.
At MortgagePal, I help clients across the North East find the most suitable mortgage for their needs — whether you’re remortgaging, buying your first home, or moving house.
🏡 Your home may be repossessed if you do not keep up repayments on your mortgage.
Anthony Vickers
Mortgage Advisor – MortgagePal
đź“Ť Based in Cramlington, serving Newcastle & Northumberland
🔑 Your mortgage made simple
