UK Mortgage Market Update – 30 March 2026
The UK mortgage market saw significant developments this week as global events pushed mortgage rates higher, lender pricing adjusted, and new data showed a rise in mortgage approvals despite affordability pressures. Here’s what happened this week and what it means if you’re planning to buy or remortgage in 2026.
Mortgage rates: upward pressure continues
Mortgage rates increased again this week as lenders responded to changing market conditions.
Rising global energy prices and geopolitical tensions have pushed up inflation expectations, which in turn has increased swap rates, a key driver of mortgage pricing.
As a result:
- Many lenders increased fixed mortgage rates
- Some mortgage products were withdrawn and repriced
- Rate volatility remains higher than earlier in 2026
Recent reports show average mortgage rates rising sharply during March, with some two-year fixed deals moving closer to 5%.
Why rates are rising despite the base rate holding
Although the Bank of England held the base rate, mortgage rates have still increased. Mortgage rates can rise even if the Bank of England base rate stays the same. This is one of the main reasons people searching “why are mortgage rates rising in the UK” are seeing rates increase even without a base rate change.
This is because:
- Mortgage pricing is based on swap rates, not just the base rate
- Markets are reacting to inflation risks
- Expectations of future rate cuts have been reduced
Recent data shows swap rates rising due to inflation concerns linked to global events, pushing lenders to reprice mortgages upward.
Key takeaway:
Mortgage rates are driven by future expectations, not just current base rate levels.
Mortgage approvals rise despite higher rates
Interestingly, new data this week showed mortgage approvals increased.
According to the Bank of England:
- Mortgage approvals rose to around 62,500 in February
- This was higher than both the previous month and market expectations
- Lending volumes also increased significantly
This suggests:
- Buyer demand is still present
- Some buyers are proceeding despite higher rates
- Confidence is stabilising compared with late 2025
Housing market: mixed signals
The property market continues to show a mixed picture.
Current trends include:
- Modest house price growth (around 1–1.3% annually)
- Slight reduction in buyer activity in some areas
- Stronger demand for well-priced properties
However:
- Higher mortgage rates are starting to impact affordability
- Some buyers are adopting a “wait and see” approach
Overall, the market remains active, but more sensitive to rate changes.
What we’re seeing from clients this week
Across London and the South East, we’ve noticed:
- Increased urgency from buyers following recent rate increases
- More remortgage enquiries ahead of further pricing changes
- Borrowers seeking to secure rates earlier
- Greater focus on borrowing capacity rather than headline rates
Many clients are now prioritising certainty over trying to time the market.
Oportfolio insight: what this means right now
This week highlights a key shift:
Mortgage rates can rise quickly when market expectations change. Even without a base rate increase, lenders have already repriced mortgages higher.
For borrowers, this means:
- Waiting doesn’t guarantee better rates
- Rate volatility can work both ways
- Securing a suitable deal early can provide protection
Perhaps most importantly:
The difference between lenders can often outweigh small changes in rates
What this means if you’re buying vs remortgaging:
If you’re buying
With mortgage rates rising and demand still present:
- Waiting may not improve affordability
- Property competition remains in many areas
- Understanding your borrowing early is key
If you’re remortgaging
This is becoming increasingly important:
- Rates are changing more frequently
- Many lenders allow securing deals up to 6 months early
- Acting early can help avoid further increases
Need clarity on your options?
Every borrower’s situation is different, especially in London where borrowing levels are higher.
If you want to understand:
- What you could realistically borrow
- Which lenders are currently competitive
- Whether now is the right time to act
Book a quick affordability review with Oportfolio Mortgages and we’ll give you clear, lender-backed guidance.
FAQ: UK Mortgage Market Update 30th March 2026
Will mortgage rates fall in 2026?
It's difficult to tell. While inflationary pressures persist and economic uncertainty continues, rates are unlikely to drop. Or if they do, it won't be a significant drop. However, things change all the time, and we may see some modest rate drops.
Should I fix my mortgage now or wait?
When rate uncertainty is common, we would usually recommend fixing into a rate just in case rates do increase significantly. However each circumstance is different, so you should always weigh up your options with your mortgage adviser.
Are mortgage approvals increasing?
Yes! Lenders are becoming much more lenient in what they will accept, meaning that mortgage approvals are increasing on average. But each circumstance is different and will need to be assessed.
