Why are lenders hiking UK mortgage rates? Interest rates and service factors explained

Mortgage rates have remained close to decade-highs for 18 months since Liz Truss’s mini-Budget. They are currently on the up again. Here’s why.

Mortgage rates symbolised by rising line graph
Mortgage rates are going up again - but is it entirely down to interest rates?
(Image credit: Getty Images)

Homeowners and prospective buyers have been hit this week by further increases to mortgage rates.

Some of the UK’s biggest lenders, including NatWest, Santander and Nationwide, hiked mortgage rates on two and five-year fixed deals by more than 0.2 percentage points on Monday (29 April). Santander followed this up with another set of 0.2% hikes on Thursday (2 May).

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Henry Sandercock has spent more than eight years as a journalist covering a wide variety of beats. Having studied for an MA in journalism at the University of Kent, he started his career in the garden of England as a reporter for local TV channel KMTV.

Henry then worked at the BBC for three years as a radio producer - mostly on BBC Radio 2 with Jeremy Vine, but also on major BBC Radio 4 programmes like The World at One, PM and Broadcasting House. Switching to print media, he covered fresh foods for respected magazine The Grocer for two years.

After moving to NationalWorld.com - a national news site run by the publisher of The Scotsman and Yorkshire Post - Henry began reporting on the cost of living crisis, becoming the title’s money editor in early 2023. He covered everything from the energy crisis to scams, and inflation. He also has bylines in MoneyWeek.