Not every lender has moved the same way. First Direct cut rates across most of its fixed range by up to 0.19 percentage points from September 2, including on a 95% loan-to-value two-year fix for first-time buyers, even as most lenders have raised prices since mid-July on renewed global tension pushing swap rates higher.
The cost so far
Since March 2026, the average two-year fixed rate has risen 0.89%, from 4.84% to 5.73%, adding £131 a month, or £1,572 a year, to a £250,000 mortgage over 25 years. A further 0.25% rise, to 5.93%, would add about £38 a month, or £456 a year, on the same terms. The Moneyfacts Average New Mortgage Rate now stands at 5.68%, up from 5.59% in August and 4.90% in March.
Separate Moneyfacts modelling estimates a 25-basis-point rise adds roughly £13 a month for every £100,000 borrowed.
An early rush to refinance
Financial Conduct Authority (FCA) data shows 381,364 mortgages were secured up to six months ahead of maturity in Q2 2026, down from 499,271 in Q1 — almost 900,000 combined across the two quarters. The Bank of England estimates 750,000 households with a fixed rate expiring in 2026 currently pay rates below 3%.
UK Finance puts the wider 2026 maturity wall at around 1.8 million fixed-rate mortgages, many taken out at sub-3% rates during 2020 and 2021 and now rolling onto pricing several percentage points higher.
