New data from Moneyfacts has shown that a typical two-year fixed mortgage deal now has an interest rate of more than 6%.
The data shows that the average rate for a two-year fixed-rate mortgage has hit 6.01%, while a typical five-year fixed rate is now at 5.67%. The two-year rate has risen from 5.98% at the end of last week, while the five-year deal has increased from 5.62%. A total of 4,683 mortgages are currently on the market, down from 4,923 from the end of last week.
Elliott Culley, Director at Switch Mortgage Finance said “The full impact of higher borrowing costs is yet to be seen by homeowners, with data from UK Finance showing that 800,000 fixed-rate mortgages will need to be refinanced in the second half of this year, with a further 1.6m loans seeing their fixes end in 2024. Meanwhile, the Prime Minister has ruled extra support for mortgage holders. Rishi Sunak said his priority is to bring inflation down, insisting that this is “the best and most important way that we can keep costs and interest rates down.”