Mortgage rates for fixed-term home loans have risen, with the average two-year fixed rate reaching its highest level since May 28 and the average five-year fixed rate hitting its highest since April 12, according to Moneyfacts. On Tuesday, the average two-year fixed mortgage rate was 5.73%, up slightly from 5.68% the previous day. Similarly, the average five-year fixed rate climbed to 5.78%, an increase from 5.73% on Monday. These increases come amid ongoing concerns about inflation, which has been a key factor influencing financial markets and lending rates. The Bank of England is set to announce its next decision on the base interest rate on Thursday. The current base rate stands at 3.75%, and while some financial analysts expect it to stay the same, others believe it could rise further due to persistent inflationary pressures. In response to rising costs, some lenders have already increased mortgage rates twice in September, partly due to higher swap rates, which are financial instruments used to determine mortgage pricing. The number of available mortgage products for homeowners has also decreased, with 7,426 products listed on Tuesday compared to 7,458 on Monday. Rachel Springall, a finance expert at Moneyfactscompare.co.uk, noted that a second wave of mortgage rate hikes is underway, driven by growing concerns about inflation. She said that other lenders are likely to follow suit in adjusting their rates, and any new mortgage deals may be more expensive than before. Springall emphasized that fixed mortgage rates are not directly linked to changes in the Bank of England base rate. While the base rate is expected to remain unchanged this week, borrowers who cannot secure a new mortgage deal—especially those with five-year fixed mortgages not due to expire until 2027—are facing continued financial pressure. In early 2022, fixed rates were as low as below 2%, and moving away from those rates has been a major challenge for many borrowers. Springall also highlighted the importance of lenders and brokers helping customers understand the potential costs of ending mortgage deals early, such as early repayment charges.