Mortgage rates rise as 750,000 households face £170 bill jump: The lenders bucking the trend and cutting deals

Mortgage rates have risen for the first time in several months, meaning homeowners coming to the end of a fixed-rate deal could face higher borrowing costs.

The average new mortgage rate has risen from 5.47% in July to 5.59% at the start of August, according to Moneyfacts, reversing the previous month's fall.

Mortgage deals are being withdrawn and repriced particularly quickly as the war in the Middle East has flared back up.

It comes as 750,000 households due to come off fixed-rate mortgages during 2026, according to Bank of England forecasts.

Many of these borrowers are on rates below 3% and set for a payment shock that could work out as a steep £170 a month increase.

Yet, some big lenders are currently cutting rates, including Santander and HSBC this week alone.

Here's what the latest mortgage rate changes mean if your deal is coming to an end...

Why mortgage rates are rising again

Mortgage rates have increased by 0.12 percentage points, rising from 5.47% in July to 5.59% at the start of August, according to financial site Moneyfacts.

This reverses the previous monthly fall with the latest increase linked to rising swap rates and concerns about inflation, as unrest in the Middle East contributing to higher oil and energy prices.

Anyone looking for a new mortgage deal may need to act faster, with the average mortgage product now available for just 11 days before being withdrawn or replaced, Moneyfacts data showed.

That's three days shorter than the previous month.

It means the best mortgage rates you see today may not necessarily be available several weeks from now ,so lock it in if you can.

Which mortgage lenders are cutting rates?

It's not all doom and gloom as some lenders have recently been reducing mortgage rates, including among the big high street brands.

Santander has today made sweeping cuts among most of its fixed and tracker rates in our residential range.

HSBC has also cut mortgage rates this week.

It follows Nationwide last week trimming mortgage rates for first-time buyers, home mover and people remortgaging. The lender made cuts of up to 0.19 per centage points taking its lowest rate to 4.52%.

If your fixed-rate mortgage is due to end later this year, it's better to worth starting to look at your options early.

What to do if your fixed mortgage deal is ending

You should start feeling out the market around six month before your mortgage fix ends.

You could be able to move to a new deal and cheaper deal sooner if you want to stay with the same lender.

Or you can look around the market for the best current rate available.

A good independent mortgage broker can help you find the best deal. You don't have to switch straight away, as mortgage offers can last for around six months.

If rates improve before your deal ends, you can get another offer, but if they rise further the existing offer is there to fall back on.

It's important not to slip on to your lender's standard variable rate (SVR), which stands at a typical 7.13%, according to Moneyfacts.

Paying the SVR rate will see your payments sky-rocket so take action to make sure you don't end up in this situation.

How to get a cheaper mortgage deal

If your fixed-rate mortgage is coming to an end, there are several things you can do to try to keep your repayments under control.

Don't wait until your mortgage expires before investigating your options.

Speak to your lender or a mortgage broker early and find out what deals you could qualify for.

A broker will help you search the market and find the best deal for your circumstances.

You could consider increasing your term - for example, moving to a 30-year term rather than 25-year term to bring down monthly costs.

However, in the long term you pay more interest if you repay your loan over a longer period.