The average two and five-year fixed mortgage rates available are at their highest levels since 2008, pushing up costs for borrowers, according to analysis. Across all deposit sizes, the average two-year fixed mortgage on the market on Tuesday had a rate of 6.43%, according to Moneyfacts.co.uk.
The average five-year fixed-rate also climbed higher, to 6.29%. The average two-year fixed-rate mortgage is at its highest level since August 2008, Moneyfacts said.
The average five-year fixed-rate is at its highest level since November 2008. Average two and five-year fixed rates breached 6% last week and have continued to climb as lenders price their deals higher amid the economic fallout from the mini-budget.
Bank of England base rate rises, amid high inflation, have also been putting an upwards pressure on borrowing costs. Last week, Moneyfacts calculated that, based on Thursday's rates, someone with a £200,000 mortgage paying it back over 25 years could end up paying around £5,000 per year more for a two-year fixed-rate deal than they would have last December.
The choice of mortgage products continues to widen, although it remains significantly lower than on the day of the mini-budget, when 3,961 products were available. Some 2,931 mortgage products were available on Tuesday, Moneyfacts said, up from 2,905 on Monday.
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