UK Mortgage Rates Rise Despite Bank of England's Base Rate Cut

Major lenders have increased fixed mortgage rates due to economic uncertainties and market conditions, despite a recent cut in the Bank of England's base rate.

• Leading banks like Santander, HSBC, and Nationwide have raised fixed mortgage rates by up to 0.35 percentage points.
• These rate hikes come after a recent 0.25 percentage point cut in the Bank of England's base rate, now at 4.75%.
• Fixed mortgage rates are influenced by swap rates and long-term economic predictions, not directly by the base rate.
• Some tracker mortgage holders will see delayed reductions in their payments, with changes for some not occurring until March 2025.
• The recent UK Budget and the election of Donald Trump have contributed to economic forecasts that are impacting mortgage pricing.

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