The Bank of England cuts base rates, but fixed-rate prices for home loans this week are higher this week, The Monetary Facts Data shows.
The data group said the average mortgage rate single benchmark point increased to 5.01%.
Among them, the average two-year repair volume increased by 2bps to 4.98% from August 26.
During the same period, the average five-year fixed rate also increased by 2bps to 5.01%.
However, the swap rate rose from 3.655% to 3.752% in the following two years and the five-year swap rate rose from 3.707% to 3.827%.
Data agencies noted that so far many lenders have raised interest rates so far this week – Natwest, Royal Bank of Scotland and NATWEST intermediary solutions have raised prices by 20bps, Santander by 15bps by 11BPS, and Vernon Building Society HODGE has raised 15bps and Hodge to 20bps.
Adam French, head of news at Moneyfacts, said: “The Bank of England’s Monetary Policy Committee meets eight times a year to set the base interest rate, however, it is estimated that the swap rates performed during the same period have changed by about one million times.
“This market is worth £35 billion and rates can change every second – sometimes multiple times per second. And it is this market that seriously affects how banks and society prices price their fixed-rate mortgage products.
France added: “The reasons that affect swap rates can be wide. [US] President [Donald] Trump’s “Liberation Day” imposed tariffs, followed by an average of two years of fixed-rate mortgages, which dropped from 5.33% to 5.29% in a few days.
“Although swap rates rise in response to the latest base rate reduction as inflation forecasts increase. This is this volatility, which means mortgage rates can rise even if the base rate drops.
“Hopefully by the end of this year, borrowers can still expect mortgage costs to continue to slide slowly, but BLIP may occasionally appear as broader economic data are increasing prices for lenders.”
