Average two-year fixed mortgage rates have risen above five-year deals for the first time in recent years, reflecting heightened market volatility. Financial information website Moneyfacts reported that the typical two-year fixed homeowner rate reached 5.56 percent, compared with 5.54 percent for a five-year deal. Experts described the shift as unusual and driven by market expectations that interest rates will remain higher in the near term.

The reversal follows rising oil and gas prices and renewed inflation concerns linked to unrest in the Middle East. Lenders have repeatedly repriced products in recent weeks, leading to higher borrowing costs and a sharp reduction in available mortgage deals. Borrowers are rushing to secure rates, with monthly repayments on a £200,000 two-year fixed mortgage now about £85 higher than at the start of the month.

Meanwhile, the Office for National Statistics said annual house price growth slowed to 1.3 percent in January, with the average United Kingdom home costing £268,000. London prices continued to fall year-on-year, while some northern regions recorded stronger growth. Private rents rose 3.5 percent over the past year, adding further pressure to household budgets.