Mortgage borrowers across the UK are facing renewed pressure as the cost of fixed-rate deals rises.

The average five-year fixed mortgage rate has climbed to around 5.9%, its highest level since 2023, while two-year fixed rates have also moved above 5.9%.

The increase is happening even though the Bank of England's Bank Rate remains at 3.75%. Mortgage rates are influenced not only by Bank Rate but also by financial-market expectations and the cost at which lenders raise money.

One major factor has been a rise in UK government bond yields. The 30-year gilt yield recently moved above 6%, increasing borrowing and funding costs across financial markets.

Energy prices and inflation concerns are also adding to the pressure. The Bank of England has warned that the Middle East conflict has disrupted energy supplies and pushed energy prices higher, creating a risk that inflation could remain elevated.

For homeowners coming to the end of a fixed-rate deal, the change can mean a significant increase in monthly repayments when they remortgage.

So what can borrowers do?

First, shop around before the current mortgage deal expires. Comparing products from different lenders, or using a regulated mortgage adviser, can help borrowers find a more competitive rate.

Second, speak to your lender early if repayments are becoming difficult. The Financial Conduct Authority advises borrowers who are worried about their mortgage to contact their lender as soon as possible.

The government's Mortgage Charter also provides protections and flexibility for eligible borrowers who are worried about higher payments. Lenders have agreed to engage with customers and discuss available options.

Borrowers should also be cautious about simply extending the mortgage term to reduce monthly payments. While this can lower the immediate cost, it can result in paying more interest over the life of the mortgage.

With millions of UK households expected to refinance onto new rates over the coming years, mortgage costs are likely to remain an important issue for household finances.

For anyone considering a new mortgage or remortgage, the key is to compare the total cost, not just the headline interest rate, and to make sure the monthly payment remains affordable if financial conditions change.