UK Cost of Living Squeeze Tightens as Mortgage Rates Rise and Gas Prices Hit Highest Since 2023 – Business Live The UK's cost of living crisis has worsened with rising mortgage rates and soaring gas prices, which have reached their highest level since 2023.
The average two year fixed residential mortgage rate has surged to 5. 63%, while the five year equivalent now stands at 5. 68%.
These increases are largely driven by volatility in swap rates – a crucial benchmark for lenders when pricing mortgages. The situation is not unprecedented, however.