Mortgage Rates Rising Again: Should You Lock In Now?
Just weeks after lenders spent August competing to cut mortgage rates, the trend has gone into reverse. Five-year swap rates — the wholesale funding costs that set fixed mortgage pricing — have climbed above 4.5% in early September, their highest level in around three years, as fears build over what the Autumn Budget might bring. Average two-year fixed rates now sit at 5.59%, with five-year fixes at 5.63%, according to the latest Moneyfacts data.
Why Mortgage Rates Have Turned Upward Again
The reversal comes down to nerves rather than a change in the Bank of England's own position — the Bank has held its base rate at 3.75% since July. What's moved is the market's expectation of what's coming next. Persistent inflation concerns and uncertainty over Budget tax and spending decisions have pushed swap rates higher, and lenders have followed by repricing their fixed mortgage deals upward.
For anyone midway through buying a home or due to remortgage in the coming months, this matters more than the headline figures suggest. A jump of even half a percentage point on a fixed rate can add tens of pounds to a monthly payment and thousands of pounds over the life of a typical fixed term.
What This Means If You're Buying a Home
If you're currently house-hunting or have an offer accepted, the practical advice is straightforward: get a mortgage offer secured and, where your lender allows it, locked in as early as possible. Most lenders let you reserve a rate for several months while your purchase goes through the legal process, often at no extra cost. Once locked, most offers protect you from further rate rises even if the market keeps climbing before you complete.
This is exactly where a slow-moving purchase becomes costly. Every week a sale drags on because of outstanding legal searches, delayed paperwork or a stalled chain is a week your rate lock is ticking down — and a week closer to needing a fresh, potentially more expensive, mortgage offer. Instructing a conveyancing solicitor promptly and responding quickly to their requests for information can be the difference between completing on your original rate and having to renegotiate a costlier one.
What This Means If You're Remortgaging
Homeowners coming off a fixed deal in the next six months face a similar calculation. Many lenders allow you to lock in a new rate three to six months ahead of your current deal ending, which means acting now could secure today's pricing even if rates continue climbing before your existing deal expires. Waiting to see whether rates fall again is a gamble — one that, on current trends, looks increasingly unlikely to pay off in the short term.
Fixed Rate or Wait? Weighing Your Options
There's no single right answer for every household, but the calculus has shifted. A few months ago, with rates falling, there was a reasonable case for holding out for a better deal. With swap rates now at a three-year high and the Budget still to come, that case has weakened considerably. Speaking to a mortgage broker alongside your solicitor — so the legal and financial sides of your move are working to the same timeline — gives you the best chance of locking in a rate before conditions shift again.
What Should You Do Next?
Rising rates make speed and preparation more valuable than ever, whether you're buying, selling, or remortgaging. QualitySolicitors' first contact team can put you in touch with a conveyancing solicitor near you who can move your transaction along quickly, helping you protect the mortgage rate you've secured. Reach out today to get started.