Average fixed mortgage rates are continuing to climb, pushing up costs for borrowers.
Earlier this week, the average two-year fixed-rate deal topped 6% for the first time in 14 years and the average five-year fixed rate hit 6% for the first time in 12 years, according to data from Moneyfacts.co.uk.
Moneyfacts said on Friday that, across all deposit sizes, the average two-year fixed-rate mortgage on the market is 6.16%, having edged up from 6.11% on Thursday and 6.07% on Wednesday.
The average five-year fixed-rate mortgage is now 6.07%, having been 6.02% on Thursday and 5.97% on Wednesday.
Many deals disappeared from the market amid the fallout from the recent mini-budget. Bank of England base rate hikes in recent months, amid soaring inflation, have also had an impact.
Moneyfacts previously 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 done last December.
Across the market, the choice of mortgage products is gradually increasing after contracting sharply last week.
Moneyfacts counted 2,533 products on Friday, up from 2,430 on Thursday.
The total is still significantly down from 3,961 on the day of the mini-budget.
Tom Bill, head of UK residential research at Knight Frank, said: “We may see mortgage rates fall to some extent if financial markets become more reassured by the Government’s economic plan, but the events of the last fortnight have been a reminder that the era of ultra-low rates is coming to an end.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel