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Fixed mortgage rates are rising again, not falling
If you've been waiting for fixed mortgage rates to drop before locking in a new deal, the wait just got more expensive: the best 2-year and 5-year fixes have gone up, not down, over the past few weeks.
What's changed
The Bank of England held Bank Rate at 3.75% on 30 July 2026, its fifth hold in a row. A held base rate doesn't mean fixed mortgage rates hold still too, and this time they haven't. As of 8 August, the best 2-year fix at 60% loan-to-value is 4.46% (Halifax), and the best 5-year fix at 60% LTV is 4.48% (Barclays), according to HomeOwners Alliance's daily rate tracker. Both are higher than they were a few weeks earlier.
Why lenders moved when the base rate didn't
Lenders don't price fixed deals off Bank Rate directly, they price them off swap rates, the wholesale cost of borrowing money for two or five years at a time. As reported by The Intermediary, two-year SONIA swaps rose from 3.978% to 4.177% and five-year swaps from 4.008% to 4.231% in the run-up to a wave of lender repricing in late July, when HSBC, Halifax, BM Solutions and Skipton all raised rates on fixed and tracker products. HomeOwners Alliance's own commentary points to the same driver: Middle East conflict pushing up inflation expectations, which pushes up swap rates, which pushes up the rate your lender offers you. Not every lender has moved the same way. Barclays and Nationwide have cut selected deals even as others rise, so the market is genuinely mixed rather than moving in one direction.
What it costs, in real numbers
Say you fixed at 4.09% two years ago on a £220,000 mortgage with 25 years left, and your deal ends this month. Refixing today at 4.46%, the current best 2-year rate at 60% LTV, takes your monthly repayment from roughly £1,172 to roughly £1,218, about £46 more a month, £552 more over the year. That's not a large enough move to change most people's plans, but it's the opposite direction from the one everyone was expecting after five held Bank Rate decisions in a row.
What to actually do about it
Rates moving up while your deal is still running is exactly the situation the timing questions in our guide to a fixed rate ending are built for: whether to lock in a rate now for a deal that hasn't ended yet, ride out the standard variable rate for a few weeks, or wait and hope rates ease again. If you're weighing whether the wait is worth it at all, should I break my fixed-rate mortgage works through the maths of paying an early repayment charge to move sooner. Either way, the number that matters is your own offer, not the average, so check your actual renewal quote against today's rates rather than the rate you remember from when you first fixed. Our guide to how the numbers work covers the mechanics if you want the full picture before you decide.
Frequently asked questions
Does a held Bank Rate mean fixed mortgage rates won't change?
No. Lenders price fixed deals off swap rates, the wholesale cost of two- or five-year borrowing, not off Bank Rate directly. Swap rates can rise or fall between Bank of England decisions, and lenders reprice in response.
Have all lenders raised their rates?
No. HSBC, Halifax, BM Solutions and Skipton have raised rates recently, while Barclays and Nationwide have cut selected deals over the same period. Check your own lender's current range rather than assuming the whole market moved the same way.
What should I do if my fixed deal ends soon and rates are rising?
Get your lender's actual renewal quote and compare it against today's best-buy rates for your loan-to-value, rather than the rate you fixed at originally. If a decision is close, working through the numbers in our guide to a fixed rate ending is a reasonable next step before you commit.
Know exactly when your deal ends
Set up a free timeline for your mortgage and we'll flag it before your rate changes, so a week like this one doesn't catch you out.
Examples are illustrative and rounded. Your own mortgage offer and lender confirm your actual figures and dates. This is information, not financial advice. For advice on your circumstances, speak to a mortgage adviser regulated by the FCA.