Mortgage rates edge higher as rising swap rates prompt lenders to reprice fixed deals

UK fixed mortgage rates have drifted higher into August, with the average two-year fix near 5.62% after lenders repriced through late July. The driver is swap rates — the wholesale funding costs lenders hedge — rising on firmer inflation expectations tied to higher oil prices, not a Bank of England move; the Bank held Bank Rate at 3.75% on 30 July. For buyers, that slightly trims affordability; for sellers, it can cool buyer urgency. A modest drift up, not a spike.