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Mortgage Rates Rise Despite Bank of England Rate Cuts

8/12/2025

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Summary

Story summary

Interest rates and mortgage rates often dance to different tunes. Nick Mendes from John Charcol reveals that while the Bank of England slashed rates, Santander hiked mortgage rates, driven by soaring swap rates and robust demand. This disconnect means fixed-rate mortgages may rise even when base rates fall, leaving borrowers in a tricky spot.

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Story summary

Interest rates and mortgage rates often dance to different tunes. Nick Mendes from John Charcol reveals that while the Bank of England slashed rates, Santander hiked mortgage rates, driven by soaring swap rates and robust demand. This disconnect means fixed-rate mortgages may rise even when base rates fall, leaving borrowers in a tricky spot.