Why mortgage rates are rising again in March 2026
Mortgage rates are rising again, with a number of high street and specialist lenders increasing selected fixed rates and, in some cases, withdrawing products at short notice. Market reports suggest this is being driven by renewed volatility in swap rates and gilt yields, which are key factors in how fixed rate mortgages are priced*.
This does not necessarily mean that all mortgage rates are suddenly surging across the board, nor does it mean that every lender is reacting in exactly the same way. But it does mean the market has become more sensitive again, and pricing can change quickly when lenders’ funding costs move unexpectedly*.
Part of the reason for this shift is the wider geopolitical backdrop. Recent tensions in the Middle East have pushed energy prices sharply higher, which has led to fresh concern about inflation. That matters because if inflation looks more stubborn, markets may become less confident that the Bank of England will cut rates as soon, or as far, as previously expected. Reuters reported on 10th March 2026 that some economists had pushed back their Bank of England cut forecasts, while markets were close to expecting a hold at the next meeting**.
The Bank of England’s next interest rate decision is due on Thursday 19th March 2026. The current Bank Rate is 3.75%. Until very recently, there had been growing hope in some parts of the market that rates could continue to edge down this year, but the latest geopolitical shock has made the short term outlook less certain ***.
It is important to remember that fixed mortgage rates are not set solely by Bank Rate. Lenders also look at swap rates, market sentiment and the cost of funding. So even when the Bank of England is expected to cut rates, mortgage pricing can still rise in the short term if markets become unsettled. That is one of the reasons we are seeing some lenders reprice now, even before the next Bank of England announcement.
Should you secure a mortgage deal now?
“When markets become unsettled, it is understandable for borrowers to feel unsure about whether to wait or act. Our view is that it is usually better to understand your options early and, where appropriate, secure a suitable deal rather than risk missing out. If rates improve before the mortgage completes, we can often review whether there is a better option available. Speaking to a mortgage broker can help you make a calm, informed decision based on what is happening in the market right now.”
Adam Nanson, Managing Director, Your Mortgage Expert
For anyone arranging a mortgage right now – whether you are purchasing, remortgaging, or looking at a product transfer – the key message is not to delay unnecessarily.
None of us has a crystal ball. This may turn out to be a short-lived market reaction and, if conditions settle, pricing could improve again. But at the moment, the risk is that waiting too long could leave you with fewer options or a higher rate if more products are repriced or withdrawn with little notice. Recent trade press coverage shows that this is already happening in parts of the market.
In many cases, it can make sense to secure a suitable deal early, so that you have something in place. Then, if the market improves before your new mortgage goes live, your broker may be able to review whether there is time to switch you to a different mortgage with a lower rate. That can offer a degree of protection without forcing you to sit on your hands and hope for the best.
How we are helping clients
At Your Mortgage Expert, we are monitoring lender changes closely and staying in regular contact with lenders so we can keep up with product withdrawals, repricing and criteria updates as they happen.
In a market like this, timing and awareness matter. A product that is available in the morning may not always still be there a few days later, and that is one of the reasons many borrowers find it helpful to speak to a broker rather than trying to track fast moving changes alone.
While the headlines may sound dramatic, it is important not to panic. Mortgage markets do move in response to world events, but not every period of volatility lasts. We hope this proves to be a short lived disruption rather than a long term shift.
If you are coming to the end of a fixed rate, this kind of market volatility is a reminder not to leave your remortgage too late. Securing a new deal early can help protect you against further increases, while still leaving open the possibility of reviewing your options if the market improves before completion.
If your mortgage is due for review, don’t leave it too late.
Our team is monitoring the market closely and can help you understand your options, secure a suitable deal, and review alternatives if pricing improves before completion.
Contact Your Mortgage Expert
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*Source: https://www.mpamag.com/uk/news/general/barclays-natwest-lead-latest-mortgage-rate-hikes/
***Source : https://www.bankofengland.co.uk/explainers/current-interest-rate?