Overview
- The Bank of England reported that net mortgage borrowing in the UK jumped to £7.7 billion in June and mortgage approvals rose to 58,200, although approvals remain below the six-month average.
- Major UK lenders including Santander and Halifax have raised fixed-rate deals ahead of the Bank of England decision, and Moneyfacts shows average two-year and five-year fixed rates around 5.6%.
- U.S. mortgage costs also climbed with the 30-year fixed rate averaging about 6.76% in the week ended July 24, and weekly mortgage applications fell 6.4% as refinance demand dropped sharply.
- Markets and lenders point to renewed U.S.-Iran hostilities and higher oil prices lifting long-term Treasury yields, which keep mortgage rates elevated and make central bank decisions the main near-term driver of future moves.
- Household strain is growing because many fixed-rate deals expire this year, the BoE warns just over five million homeowners could see higher repayments by end‑2028, and rising consumer credit and lender default readings suggest refinancing stress for vulnerable borrowers.