Mortgage borrowers are being urged to secure fixed-rate deals quickly amid expectations of rising costs. Swap rates have increased following renewed hostilities between Iran and the US, pushing UK 10-year gilt yields to their highest level since 2008. Aaron Strutt at Trinity Financial warned that fixed rates are set to climb despite no major changes from lenders yet.

Nationwide currently offers two-year fixes at 4.48 per cent and five-year fixes at 4.5 per cent. Gen H, an online-only lender, announced it will raise all rates by 0.2 percentage points from Thursday evening. Adrian Anderson at broker Anderson Harris is contacting clients facing remortgaging to bring forward their decisions.

Lucian Cook at Savills noted mortgage markets have become sensitive to geopolitical events since the Ukraine war began in 2022. Mortgage approvals fell to 56,100 in July, down 15 per cent on July 2025, and net mortgage borrowing decreased to £4.3bn from £7.7bn in June. Cook warned that upward pressure on costs may limit autumn market activity.