Mortgage costs climb despite base rate cuts

Mortgage rates have risen since October despite the Bank of England cutting the base rate twice, according to analysis by the finance comparison site Finder. Since October 2024, the base rate has been cut twice, falling from 5% to 4.5%. The average rate on a two-year fixed mortgage with a 25% deposit increased from 4.41% in October to 4.54% in March, hitting a peak of 4.66% in February. The average five-year fixed rate mortgage on the same terms has increased from 4.06% to 4.32%. Kate Steere, savings and mortgages expert at Finder, said: "Homeowners could reasonably expect lower mortgage rates to follow base rate cuts, but instead, they’ve faced rising costs in recent months." The data also shows that while rates for home loans have risen, savers have seen average rates cut at 2.4 times the pace of the base rate. 

The Mail on Sunday (20/04/2025)