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UK Mortgage Rates Edge Higher for First Time Since February

Lender repricing reflects volatile swaps, sticky inflation and pre‑Budget caution.

Overview

  • Moneyfacts reports average two- and five-year fixed deals rose 0.02 percentage points in October to 4.98% and 5.02%, ending a seven‑month run of declines.
  • Analysts, including Moneyfacts' Rachel Springall, cite swap-rate volatility and inflation near 3.8% as reasons that near-term Bank of England rate cuts look unlikely.
  • Mortgage product shelf‑life lengthened to 22 days from 17 in September, indicating providers are keeping deals on the market longer while reassessing pricing.
  • Barratt, Redrow and Persimmon launched the Rezide scheme with Barclays and TSB, offering a 5% buyer deposit plus a 15% equity loan (capped at £100,000) on new‑build homes in England.
  • In the US, 30‑year rates drifting into the mid‑6% range, including a dip to about 6.26%, triggered an 80% jump in refinancing over three weeks and a pickup in purchase activity, according to MBA, Freddie Mac and NAR data.