To understand this you need to know about swap rates and the impact of the war in Iran
On 16 January, the average rate on a new two-year fixed-rate mortgage was 4.78%, according to the financial data company Moneyfacts. Two months later, it was 5.20%. Between those two dates, the Bank of England voted to keep the base rate at 3.75%. More significantly, though, the US and Israel carried out airstrikes on Iran and a conflict broke out.
The US air attacks on Iran have caused economic shocks across the world. Stock markets have tumbled, petrol and heating oil prices have gone up and there have been warnings of higher bills to come, for everything from food to holidays. All of this feeds into interest rate expectations, and from there into mortgage rates.
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