Mortgage costs are climbing, with average rates on two-year fixed deals reaching 5.5% despite the Bank of England recently lowering the base interest rate to 4.75%. Several major lenders, including Barclays and HSBC, have upped their rates, complicating matters for borrowers seeking lower costs. Factors such as a recently announced Budget may have contributed to increased borrowing expenses. While the overall trend suggests declining rates, lenders anticipate a ‘higher for longer’ outlook, making it crucial for borrowers to stay vigilant on rate changes as they approach mortgage renewals.