As lenders continue to reprice 2-year fixed rate mortgages have risen above 6% for the first time since November 2008, according to data from Moneyfacts.
The average 2-year fixed-rate mortgage now comes in at 6.07% while the average 5-year fix is also closing in on 6% (5.97%), a level not seen since February 2010.
The increase follows a reduction in choice with the number of available products down 40%. Last week Wednesday there was a total of 3,961 products on the market. Today, this figure stands at 2,371, Moneyfacts data shows.
Rachel Springall from Moneyfacts. said: “Borrowers may well be concerned about the rise to fixed mortgage rates but it is essential they seek advice to assess the deals that are available to them right now.
“Fixing for longer may seem more appealing, particularly as both the average 2- and 5-year fixed rates rise to levels not seen in over a decade.
“Consumers must carefully consider whether now is the right time to buy a home or to wait and see how things change in the coming weeks.”
Last week Bloomberg Economics estimated that higher borrowing costs will see the average monthly cost of a 2-year fix rise to about £1,325 per month, up from £725 in 2021.
