Mortgage rates in the UK have seen a consistent increase this week as major lenders adjusted their pricing. According to Moneyfacts, the average two-year fixed mortgage rate rose from just below 5.37% on Monday to 5.41% by Friday.
Leading banks such as NatWest Group PLC, Barclays PLC, and Lloyds Banking Group PLC's Halifax have been at the forefront of these rate hikes, despite expectations of potential cuts to the base interest rate by the Bank of England. Money markets anticipate the first cut in August, with two additional reductions expected before the year concludes, following a lower-than-expected inflation report.
Rohit Kohli, director at The Mortgage Stop, commented that larger lenders are likely raising rates to safeguard their profit margins. He noted that this move was unexpected and could prompt other lenders to follow suit.