Mortgage Rates Are Rising Again: Why Major Lenders Are Hiking Prices and What Borrowers Should Do Now
Just when homeowners thought the worst was behind them, the mortgage market has delivered a fresh blow. In recent days, three major UK lenders have announced increases to their home loan pricing, reversing months of cautious optimism that borrowing costs were on a sustained downward trajectory. For the estimated 1.6 million households due to remortgage in 2026, the timing could hardly be worse. The rate rises are not happening in a vacuum. UK inflation remains stubbornly above the Bank of England's 2% target, with the Consumer Prices Index (CPI) registering 3.4% in December 2025 — a figure that has dashed hopes of rapid monetary easing. Meanwhile, UK 10-year gilt yields have climbed to 4.48%, up sharply from 3.91% in September 2024, pushing up the swap rates that underpin fixed-rate mortgage pricing. For borrowers, the message is clear: the era of falling mortgage rates has, at least temporarily, stalled. This article examines why mortgage rates are moving upward again, what the economic data tells us about the outlook, and — crucially — what practical steps borrowers can take to protect themselves in an uncertain rate environment.