Mortgage Rates Hit 5.5%: What This Means for First-Time Buyers and Remortgagers
Published: 28 February 2026
The Event
Average mortgage rates for two-year fixed deals have risen to five point five percent, up from four point eight percent in December 2025. Five-year fixed rates now average five point three percent. The increases follow the Bank of England's decision to hold the base rate at five percent amid persistent inflation concerns.
Lenders including Nationwide, HSBC, and Barclays raised rates this week, with more expected to follow. These are the highest mortgage rates since late 2023, and they reverse the brief fall seen in autumn 2025 when rates dropped to around four point five percent.
