Mortgage costs in the UK may be set to rise soon even if the Bank of England base rate stays low, according to Bloomberg.com. This is due to rising swap rates, reflecting the real cost of money to banks as they price their loan products. Strong UK economic growth and fears of US inflation have been factors affecting these rates. Analysts expect house price growth to be limited to 2 percent in 2017 as a result of this and other developments.

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