Overview
- Moneyfacts reports the average two‑year fix at 5.01% and the five‑year at 5.09%, with the overall fixed‑rate average at 5.04%, the highest since last summer.
- A total of 472 residential products were withdrawn over roughly two days, about 6.5% of the market, marking the fastest pullback since the 2022 mini‑Budget; around 7,164 deals remain.
- The shake‑up follows sharp rises in swap rates and gilt yields linked to higher oil prices and inflation risk, prompting moves by major lenders including HSBC, Nationwide, NatWest, Santander, TSB, Barclays, Virgin Money, and Principality.
- Market pricing now points to fewer or later central‑bank cuts as inflation risks rise, with some analysts noting minimal BoE easing is priced this year and the Fed seen on hold despite softer US jobs data.
- In the US, 30‑year mortgage rates hover near 6.14% as the 10‑year Treasury stays elevated, while UK borrowers facing expiries are being advised to lock options early as pulled deals are expected to return at higher prices.