Falling mortgage costs may soon be a thing of the past, despite a record low base rate. The swap rate used by banks to actually price their loans have risen to pre-Brexit levels. The Bank of England base rate had been reduced to 0.25% following the referendum decision to leave the EU. But market growth has been stronger than expected and swap rates have been steadily increasing since September. The five-year sterling swap rate rose to 1% on Monday after having been as low as 0.39% in August. A top economist said that mortgage rates had hit a floor and could soon start rising too.

Era of Falling U.K. Mortgage Costs May Be at an End – Bloomberg