Market Update
As we move into the final days of March 2026, the UK mortgage market has shifted direction once again.
Over the past week, lenders have begun increasing fixed mortgage rates and withdrawing some of their most competitive products. This change has been driven by movements in financial markets rather than a direct change in the base rate.
For anyone considering a purchase or remortgage, this is an important moment to review your options.
What Has Changed?
Earlier this month, there were signs that mortgage rates were stabilising and potentially heading lower.
However, global economic developments, particularly rising energy prices and renewed geopolitical uncertainty, have altered that outlook.
Swap rates, which influence how lenders price fixed-rate mortgages, have increased by approximately 0.30% in a single week.
Although the Bank of England has kept the base rate at 3.75%, lenders have responded quickly to these market pressures.
Institutions such as Barclays, HSBC and NatWest have:
- Increased fixed mortgage rates
- Withdrawn lower-rate deals
- Adjusted their product ranges
Why Are Fixed Rates Increasing?
It is important to understand that fixed mortgage rates are not set directly by the base rate.
Instead, they are influenced by swap rates, which reflect:
- Expectations around inflation
- Global economic conditions
- Movements in energy markets
When these factors change, mortgage pricing adjusts accordingly.
This is why rates can rise even when the base rate remains unchanged.
Should You Wait or Act Now?
Earlier in the year, many borrowers were choosing to wait in anticipation of falling rates.
In the current market, that approach is less certain.
With lenders adjusting rates quickly and product availability changing frequently, delaying a decision could result in fewer options or higher borrowing costs.
That said, every situation is different, and the right approach will depend on your individual circumstances.
A Different Perspective: Where Opportunities Still Exist
While rising rates naturally attract attention, there is another side to the current market.
Property supply has increased, giving buyers more choice than we have seen in recent years.
This can create opportunities:
- More negotiating power on purchase price
- Reduced competition on certain properties
- Greater flexibility when making offers
In some cases, negotiating a lower purchase price can help offset the impact of a higher interest rate.
The Value of Experience in a Changing Market
In times like these, experience plays a crucial role.
David Clift, who leads Greenstone Mortgages, brings over 25 years of experience in the UK mortgage industry.
Having worked through multiple market cycles, David understands how quickly conditions can change and how important it is to adapt accordingly.
Rather than focusing on short-term movements alone, the emphasis is on helping clients make well-informed decisions that suit their long-term goals.
What Should You Do Next?
If you are planning to buy or remortgage in the coming months, it may be worth:
- Reviewing your current mortgage position
- Exploring available products sooner rather than later
- Understanding how long current rates can be secured for
- Considering both rate options and property negotiation opportunities
A well-timed decision can make a meaningful difference to your overall financial position.
Frequently Asked Questions
Are mortgage rates rising in the UK right now?
Yes. Fixed mortgage rates have increased in late March 2026 due to rising swap rates influenced by global economic factors.
Why are rates rising if the base rate is unchanged?
Fixed rates are driven by swap rates, which respond to inflation expectations and global market conditions rather than just the base rate.
Should I wait for mortgage rates to fall?
Waiting is now less predictable. It is important to review your options based on current market conditions and your individual situation.
Can I still secure a competitive mortgage deal?
Yes. There are still competitive options available, but availability can change quickly, so timing is important.
Summary
The mortgage market has shifted again, and conditions are evolving quickly.
Understanding what is driving these changes and taking timely action can help you stay in control of your options.
Speak to Greenstone Mortgages Today
If you would like tailored advice based on your situation, our team is here to help.
Get in touch with Greenstone Mortgages to discuss your options and plan your next move with confidence.
Your home may be repossessed if you do not keep up repayments on your mortgage.