Mortgage Rates Rise as Bank Rate Holds

Virgin Money has increased selected purchase and remortgage rates by up to 0.30%, including two- and five-year fixed products. Two-year trackers are rising by 0.10% and 10-year fixes by 0.15%. The change comes despite Bank Rate being maintained at 3.75% in July, illustrating that mortgage pricing is driven by funding costs, swap markets, risk appetite and lender capacity—not Bank Rate alone.

Reports of bond-market volatility and expectations for further Bank Rate rises reinforce the need for proactive refinancing conversations. One estimate suggests more than one million homeowners could face an average monthly payment rise of £283 during this year’s refinancing wave, although individual outcomes will vary substantially by balance, term and product.

Advisers should revisit pipelines early, compare product-transfer and remortgage options, and explain the trade-off between payment certainty and tracker flexibility. AI-supported CRM prompts and rate-monitoring workflows may help firms identify expiring fixes sooner, but recommendations must remain based on current verified pricing and each client’s circumstances.

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