Analysis by leading mortgage adviser L&C has shown that mortgage rates have been rising rapidly since the low of October last year.
The average of the keenest low LTV remortgage rates from the top 10 lenders has lifted substantially since the record lows of last year.
The increase to the 2-year average rate would mean the same mortgage will cost over £800 more per annum in March.
The two recent Base Rate rises have already been passed through to many of the Standard Variable Rates, taking the average of the top 10 to 4.14%.
With many anticipating more Base Rate rises to come, possibly as soon as next week, that could see further increases in mortgage costs for households that fail to take action.
With deals only lasting a matter of days in some cases borrowers are bound to be worried about missing out on the best fixed deals if rates continue to climb.
They may not realise they can apply up to six months before their deal ends to secure a current deal.
Lender offers are typically valid for three to six months, enabling an application to be made on a current deal, even though an Early Repayment Charge may remain in force for several months.
David Hollingworth, associate director at L&C Mortgages, said: “Mortgage rates have been shifting rapidly as lenders are forced to adapt to the impact of market expectation of higher rates on their funding costs.
“The sheer pace of change is something that could take borrowers by surprise, especially when the cost of living and other outgoings such as energy are already rising too.
“Fixed rates are still at historically attractive levels so borrowers should review their current deal to make sure that they are on the best deal and protecting their position, especially against a backdrop of rocketing outgoings and further potential increases in base rate.
“Rates are moving quickly though and deals rapidly come and go, often only lasting a matter of days before being replaced with higher rates.
“Borrowers can lock in at a current rate up to 6 months ahead giving the chance to review well ahead and ensure a smooth switch over when their current deal ends. That could help them get ahead of any further rate rises.”
