Average two-year fixed rate climbs to 5.63% as lenders reverse July's cuts, wiping out most of 2026's falls

The average two-year fixed mortgage rate has climbed to 5.63% in August, Moneyfacts reports — up from February's 4.85% low and erasing most of this year's falls after lenders reversed course in July. The driver is swap-rate volatility, the wholesale rates used to price fixed deals, as Middle East tensions lift energy prices and revive inflation fears. For buyers, that means tighter affordability on new fixes right now; for sellers, it trims what some buyers can stretch to, so realistic pricing matters more. It is a modest upward drift rather than a spike, with the Bank of England holding Bank Rate at 3.75% on 30 July.