Five major lenders have increased mortgage rates amid ongoing market uncertainty fueled by geopolitical tensions and expectations of future interest rate hikes by the Bank of England. Barclays raised rates across several mortgage products by 0.2 percentage points, with its two-year fixed rate now at 5.53% and the five-year fixed rate reaching 5.48%.

TSB, recently acquired by Santander, along with Santander itself, Skipton Building Society, and Nottingham Building Society, have also adjusted their residential mortgage rates upwards. These changes come as the mortgage market reacts to movements in swap rates, a key benchmark used to set fixed-rate mortgage pricing.

Market volatility has been influenced in part by the recent conflict in the Middle East, which has prompted investors and economists to reassess inflation projections and economic conditions for the year ahead. Swap rates have experienced notable repricing, directly impacting the cost of fixed-rate borrowing.

The Bank of England has maintained its base interest rate at 3.75% up to this point but is scheduled to review rates again next Thursday. Analysts predict that the central bank could implement an increase as early as November, contributing to lenders’ preemptive rate adjustments to manage financial risks.

These developments have heightened concerns among potential homebuyers and existing mortgage holders, who may face higher borrowing costs in an already challenging market environment.