Average 5 year mortgage hits 6.00%
The rising cost of fixed rate mortgages continues as the average five year fixed rate mortgage today hits 6.00%, the highest level since 22 December 2008.
In the last month the average five year fixed has increased by 0.43%, while the average two year fixed has increased by 0.41% to 5.08%.
Borrowers have also seen a 5% reduction in the number of residential mortgages available this month, with the total today standing at 1,242.
The reduction in product numbers is being felt in all LTV bands, with the exception of 90% LTV deals. Borrowers with a 10% deposit now have access to 21% more deals than they did at the start of the month.
New entrants into the 90% LTV arena this month include Britannia BS, Cambridge BS, Earl Shilton BS, Leek United BS and Saffron BS.
Louis Kaszczak, Head of Moneyfacts.co.uk commented:
“The demand for fixed rate mortgages continues to increase as borrowers look to fix their repayments ahead of expected rates rises.
“Borrowers are now gambling on when the Bank of England will increase the base rate and by how much.
“Those on tracker deals or their lender’s SVR are likely to be seeing significantly lower repayments at present than those available on fixed deals. There appears to be little incentive for borrowers to switch over to a more expensive deal that might only achieve longer term rewards.
“Those that are looking for a new fixed deal need to act fast as the lenders continue to fall over each other to increase rates. No one seems to want to offer the lowest fixed rate deal at the moment.
“The only positive news is for those with a small deposit, where competition is slowly returning to the market.
“Although with an average five year fix standing at 6.79% for those with a 10% deposit, it is debatable how many borrowers will take up these deals.”
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.
Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.
Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600
We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £500