Mortgage costs have officially hit the highest level for 15 years with the average rate for a two-year fixed deal hitting 6.66%.
According to MoneyFacts.co.uk, the average two-year residential fixed rate today was 6.66% - up from 6.63% yesterday.
It is also 0.1 percentage point higher than the peak the UK saw after the Mini-Budget.
On October 20 2022, the average two-year fixed rate was 6.65%.
MoneyFacts told The Mirror that the last time two-year mortgage rates reached this high was in August 2008.
The average five-year fixed mortgage rate sat at 6.17% - up from 6.15% yesterday.
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Mortgage rates have risen over the last 18 months due to the Bank of England hiking its base interest rate.
Last month, the Bank of England hiked its base rate up by 0.5 percentage points taking it to 5%.
This was the highest level it had been since the financial crash in 2008 and the largest single rise since February this year.
It is the thirteenth time the base rate has been raised in a bid to lower inflation - which currently sits at 8.7%.
Today, some of the major mortgage lenders in the UK are to be questioned by MPs in the Treasury Committee.
The hearing will cover the mortgage stress faced by borrowers, the response to people falling behind on repayments and the wider impact on the UK housing market.
It will also cover how mortgage holders are trying to cope.
Rachel Springhall, finance expert at Moneyfacts said: “Borrowers may be disappointed to see the average two-year fixed mortgage rate has risen to its highest point in 15 years.
"Those borrowers concerned over the affordability of a deal might pause their homeownership plans, or indeed park the idea of refinancing.
"After the fiscal announcement, fixed mortgage rates rose sharply, which resulted in a worrying environment for potential buyers and those needing to remortgage.
“There are still some competitive deals out there for consumers to choose from, so it’s vital that borrowers seek advice to go through their options. Anyone struggling to pay their mortgage, or reaching the end of a low fixed rate, would be wise to speak to their lender immediately.”
How do interest rates affect my mortgage?
Most of the time, mortgage costs are linked to the Bank of England's base interest rate.
"Tracker" mortgages move in line with the base rate, so these become more expensive when the base rate goes up.
Standard variable rate (SVR) mortgages normally go up too - but it is down to your lender to pass on any rises.
You are usually placed on an SVR deal after your fix or tracker rate ends.
More than 1.4million mortgage holders have a tracker that moves in line with the base rate or a standard variable rate (SVR) deal.
Currently, eight out of ten mortgage holders are on a fixed-rate deal, if this is you, your rate won't change while you're still in your current deal
However, you are more likely to pay more when you come to remortgage due to how much rates have risen over the 18 months.
