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Lenders Pull Hundreds of Deals as UK Mortgage Rates Jump

Oil-driven inflation fears have pushed five-year swap rates near 3.92%, pressuring lenders to reprice.

Overview

  • Nearly 500 residential mortgage products were withdrawn in roughly 48 hours, trimming about 6.5% of available deals, according to Moneyfacts.
  • Barclays, NatWest, Nationwide and Virgin Money raised fixed rates for the second time in a week, with increases generally around 0.2 to 0.3 percentage points taking effect by March 13.
  • Market data show five-year swaps at about 3.918% after a sharp climb, with two-year swaps around 3.83%, reflecting higher funding costs for fixed-rate mortgages.
  • Headline mortgage pricing has moved higher, with typical rates reported above 5%, and experts estimate a 0.2 percentage-point rise adds roughly £360 a year on a £150,000 loan.
  • Analysts link the repricing to Middle East tensions and higher oil prices near $100 a barrel, and they warn expected Bank of England cuts could be delayed if inflation risks persist.