Long-dated UK government bond yields remained elevated as investors weighed inflation and the possibility of another Bank of England rate increase. The Bank held its policy rate at 3.75% in September; three committee members wanted a rise, and its next scheduled decision is November 5. For mortgage holders, the relevant question is how those expectations feed into the price of a new fixed-rate deal. A 30-year gilt yield is not itself a household mortgage rate, but it is one sign of how expensive long-term borrowing has become.
What it means: Does a higher gilt yield immediately change an existing fixed mortgage? Usually no. Borrowers generally feel a change when their fixed term ends or when they take out a new loan.