UK Mortgage Rates Remain Stubbornly High Even as Central Bank Cuts

UK homeowners refinancing mortgages now face rates two to three times higher than the sub-2% deals that expired in 2022–23. The Bank of England's rate cuts since August 2024 have provided limited relief. Tight housing supply, not demand, is driving the modest 2.2% annual house price growth in June 2026, while elevated borrowing costs suppress transaction volumes.