Martin Lewis issues fixed mortgage warning ahead of payment 'rise'

Martin Lewis has issued a warning over mortgage bills - warning they are "rising". The BBC Sounds podcast host spoke out via X, formerly Twitter, as he circulated a warning over mortgage repayments being increased across the country.

He said: "UK base rates may've been cut, but the rate you can get a mortgage fix at is rising, here's why and what you can do..." Money Saving Expert spoke to David Hollingworth, L&C Mortgages, who warned: "The Budget and the US election have added a hint of uncertainty around future rate movements. That has caused a flurry of price changes to feed through with most resulting in fixed rates being hiked."

Aaron Strutt, Trinity Financial said: "Lots of people are wondering how rates are going up given the Bank of England base rate came down, but fixed rates do not track the base rate. The money markets had priced in funding cost reductions and probably lower inflation. Rates were getting cheaper but the Budget threw a spanner in the works."

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Nicholas Mendes, John Charcol, commented: "This trend is being driven by a combination of rising swap rates [which mortgages are indirectly linked to], increased demand for competitive products, and lenders recalibrating their strategies to balance profitability and service capacity."

When approached over whether to fix, Aaron Strutt, Trinity Financial, said: "If you are applying for a mortgage, it makes sense to secure a rate now. You can monitor the market and try to swap to cheaper deals if they are available before you complete your purchase or remortgage. In a regular market, mortgage rates go up and down – this is going to happen more frequently than many, particularly younger, borrowers have been used to."

Mortgage expert Sam Charles said on Twitter/X: "Ah, the Bank of England giveth, but the mortgage lenders taketh away. Base rates are down, but mortgage rates keep sneaking up like a bad hangover after half a shandy. Here’s the deal: while the base rate may be lower, lenders are playing cautious, worried about future economic wobbles and inflation.

"It’s a bit like cutting prices on the snacks at a party but then doubling the cover charge. What can you do? Well, shop around don’t just accept the first rate that smiles at you. Consider shorter fixes, explore your bargaining power, or even ask your current lender to sweeten the deal. And remember: the best mortgage rate might just be the one that lets you sleep at night without a calculator under your pillow."