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Mortgage Rates Jump in UK and US as Energy Shock Reprices Markets

Energy-driven surges in swap and Treasury yields have pushed lenders to raise or withdraw mortgage offers.

Overview

  • In the UK, Moneyfacts puts average two- and five-year fixes near 5.3%–5.4%, adding roughly £800–£1,000 a year on a £250,000 mortgage versus late February.
  • More than 500 UK mortgage products have been pulled, with major lenders withdrawing sub‑4% deals as funding costs rise.
  • The Bank of England held its base rate at 3.75% with a unanimous vote, and Sonia swap rates are up close to one percentage point since late February, shifting markets toward later cuts or potential hikes.
  • In the US, the 30‑year fixed averaged 6.22% for the week ending March 19 (Freddie Mac), while daily gauges topped 6.5% and mortgage applications fell about 11% week over week.
  • Spring housing momentum is weakening, with agents warning of softer activity from Long Island to national markets, and UK brokers noting trackers look cheaper than fixes but carry higher-rate risk if policy tightens.