The average 2-year residential home loan rate has risen to 5.35%, up from 4.83% at the start of March.
This is the highest typical rate given that March 2025, Moneyfacts data programs, which would add an extra ₤ 900 per year to the expense of loaning ₤ 250,000 over 25 years.
Adam French, head of consumer financing at Moneyfacts, said: “Swap rates, which underpin mortgage pricing, have risen greatly following the decision to hold the base rate at 3.75%, with markets translating commentary from the Bank of England as leaving the door available to rate increases amid ‘Trumpflation’ worries.
“With 2- and five-year swaps now sitting at their highest level in more than a year, lenders are as soon as again facing higher funding expenses, and this will feed through into mortgage pricing.
“Moneyfacts analysis of more than thirty years of historical rates information shows home mortgage rates have actually historically balanced around 1.5 percentage points above Base Rate.
“If markets continue to price in one or two rate increases, this could see average brand-new home mortgage rates stabilise at around 5.50% to 5.75%.”
Two- and five-year swaps are now around 1 percentage point greater than at the start of the dispute and at their greatest level in more than a year (January 2025)– to now relax 4-4.25%.
If average rates reached 5.50-5.75% that would leave customers paying ₤ 1,000 to ₤ 1,500 more per year on a common ₤ 250,000 home mortgage compared to simply a few weeks back.