UK mortgages out of sync with BoE policy
Average two-year rates for home loans have risen since March, despite BoE’s extended pause
UK mortgage rates suggest lenders have been expecting a tightening in financial conditions for at least six months, even though the Bank of England has kept policy on hold throughout the year.
At the most recent meeting on September 17, the BoE kept the base rate at 3.75% – its sixth consecutive hold. Throughout the bank’s most recent cutting cycle, which lasted from August 2024 until its 25 basis point cut in December 2025, average two-year fixed mortgage rates moved broadly in sync with the
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