Mortgage Rates Climb as Lenders Reverse Recent Cuts
Major UK lenders including Nationwide, NatWest and Santander have increased mortgage rates this week - the first sustained upward movement in six months
05 February 2026
After months of falling mortgage rates, borrowers are facing a reversal as several major UK lenders have increased their fixed-rate deals this week. Lenders including Nationwide, Santander, Virgin Money and NatWest increased mortgage rates in February 2026, marking the end of a competitive price war that had driven rates to their lowest levels since 2022.
What's Happening?
NatWest has increased its mortgage rates for the second time in as many weeks, with the changes affecting mortgages across purchase, remortgage, first-time buyer, and buy-to-let products. The bank is not alone - multiple lenders have followed suit, with HSBC and Nationwide also hiking rates on fixed deals.
The average 2 year fixed mortgage rate in the UK was 4.27%, which was up 0.02% on the previous week, according to recent figures. While this may seem like a small increase, it signals a shift in market sentiment after months of declining rates.
Why Are Rates Rising?
The rate increases come amid changing economic conditions. Office for National Statistics figures published on 21 January showed inflation increased in December to 3.4%, up from 3.2% in November - a bigger jump than analysts had predicted.
This unexpected inflation rise has dampened expectations for aggressive Bank of England base rate cuts in 2026. On 5 February, the Bank of England held its base rate at 3.75%, with the vote being closer than many expected. The moves came amid predictions the Bank of England may not cut interest rates as quickly or deeply as previously expected.
Additionally, swap rates - which heavily influence fixed mortgage pricing - have risen in recent weeks, pushing up lenders' funding costs.
Should You Act Now?
Richard Aston from Mortgages Northern Ireland said on 4 February 2026: "Recent improvements in fixed rates had been slowing and more lenders are now reversing some of those cuts and edging fixed rates higher. As more lenders hike rates, it often forces others to take similar action and although these aren't enormous increases it highlights that there's no room for complacency and that things can change quickly."
Despite the recent increases, mortgage rates remain significantly lower than they were during 2023 and early 2024. In February 2026, the best mortgage rates range from 3.55% for a 2 year fixed rate to 3.73% for a 5 year fixed rate, which are still highly competitive by recent standards.
What This Means for Borrowers
If your fixed-rate deal is ending soon, it's worth acting sooner rather than later. The mortgage market can move quickly, and waiting could mean missing out on current rates before they rise further.
For those on a Standard Variable Rate (SVR), the situation is even more pressing. The average standard variable rate in February 2026 in the UK is 7.27%, significantly higher than available fixed deals.
However, fixed rate mortgages currently on offer are still at their lowest level since 2022, meaning there are still good deals available for those who act promptly.
Looking Ahead
While the immediate outlook shows rates edging upward, the longer-term picture remains uncertain. Experts still predict that if inflation continues to fall toward the Bank of England's 2% target, there could be room for further base rate cuts later in 2026, which may eventually bring mortgage rates down again.
For now, borrowers are advised to review their options with a qualified mortgage adviser who can help navigate the changing market and secure the best available deal for their circumstances.
If you're approaching the end of your fixed-rate mortgage deal or considering remortgaging, speak to one of our qualified mortgage advisers today. Call us on 0330 043 0327 or visit our website for a free, no-obligation consultation.
