Mortgage costs are rising again as markets rethink the path of interest rates. While the Bank of England has paused for now, borrowers are facing a narrowing window to secure cheaper deals.

The Bank of England has kept interest rates on hold at 3.75%, reflecting ongoing uncertainty about inflation. Rising energy prices, linked to the conflict in the Middle East, are now a key concern for policymakers.

Mortgage rates have repriced sharply in recent weeks as investors rethink the path of interest rates. As of Thursday morning, markets were pricing in a rate rise as the next most likely move – a shift from expectations before the conflict, when traders saw an 80% chance of a cut at the March meeting.

This reassessment has pushed leading fixed rate mortgages higher; in late February, borrowers could secure fixed rates a little over 3.5%. Now, the availability of fixed rates below 4% is dwindling. Should this trajectory continue, two-year fixed rates will soon exceed tracker products.

The outlook remains highly uncertain. While there is a possibility that mortgage rates begin to stabilise if energy markets settle, any prolonged geopolitical pressure is likely to keep upward pressure on pricing.

For borrowers, the priority is managing risk. Locking in a rate today can protect against further increases, while many lenders allow you to revise the deal before completion if pricing improves. Some lenders are now allowing borrowers to secure a new deal early – even within a penalty period. Speaking to a broker can help you understand how to balance certainty against flexibility in a changing market.

If you're planning to buy or remortgage, speak to one of our brokers today. We scan over 200 lenders to find the right deal, can secure a rate quickly, and keep your options open if the market improves.