8 November 2021
The price of the average fixed-rate mortgages have increased for the first time since June but still remain much lower than the same time last year.
Fierce competition from lenders has caused rates on two and five-year fixed rate deals to fall consecutively over the past four months. It has meant many borrowers who have taken out mortgages during this time have been benefiting from record low prices on their repayments.
However, it would appear the tide may be turning as new data released today by Moneyfacts.co.uk revealed prices over the last month had climbed up a by 0.04% on both two-year and five-year fixes to reach 2.29% and 2.59% respectively across all types of mortgages.
Borrowers with bigger deposits or equity were worst hit by the price hikes. For those people taking out mortgages for loans for 75% of the property’s value – those with 25% deposits or more – rates have increased the most.
Borrowers taking out 65% loans will have seen rates go up by 0.39% and 0.38%, to 2.50% and 2.70% respectively on two-year and five-year fixed rates.