UK Homeowners Face Mortgage Rates Doubling and Tripling Upon Refinance

Homeowners across the UK are refinancing mortgages at rates two to three times higher than the sub-2% fixed deals that expired in 2022–23. Despite the Bank of England's rate-cutting cycle since August 2024, effective mortgage rates remain materially elevated. This affordability squeeze caps transaction volumes even as annual house price growth ticked to 2.2% in June 2026, suggesting tight supply rather than robust demand is supporting the market.