The latest research from Moneyfacts.co.uk shows that today the average two year fixed rate mortgage stands at 6.75%, the highest rate we have seen in the last 10 years. Customers looking to fix their mortgage for five years are also paying the price as the average rate has increased to 6.72%.
The curse of Friday 13th bought more pain for borrowers as swap rates reached a new high of 6.49%. With lenders having to pay such a huge price to secure funds and a lag time of a few weeks before this cost is passed on to mortgage customers, the situation is likely to get worse before it gets better.
Many borrowers prefer fixed rate deals, particularly in today's economic climate as they struggle to keep outgoings under control. However, many are likely to find this increased cost too much to bear. With the average two year variable rate standing at 6.66%, many are finding they have little choice.
To keep an eye on the latest rates visit our mortgage best buy table, to help you compare all types of mortgages to find the right mortgage for you.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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