UK mortgage rates creep up as brokers warn of possible ‘further pain’

Concerns interest rates will stay higher for longer if official data on Wednesday shows inflation is back above 2% target

The average cost of a new fixed-rate mortgage is continuing to creep up, data shows, as brokers warn that borrowers could face further pain" if the latest data out this week shows inflation has risen back above the Bank of England's 2% target.

Expectations that UK interest rates will stay higher for longer as a result of measures in last month's budget have prompted many mortgage lenders to increase the cost of their new fixed-rate deals, while the US election result has helped to fuel the volatility.