The average five-year fixed rate at 60 per cent loan-to-value has increased from 2.54 per cent to 2.66 per cent in the space of just two months according to research from Moneyfacts.
The research shows that the lowest five-year fixed mortgage rates may already be a thing of the past. These rates, in particular, seem to have been badly affected as the likelihood of a base rate increase comes ever nearer.
A small rise of just 0.25 per cent on today’s average standard variable rate (SVR) of 4.84 per cent would cost borrowers an extra £261.72 a year Moneyfacts suggests.
However, before any panic sets in its well to remember that long-term fixed mortgage rates are still very low in comparison with those of a year ago, so borrowers who are coming to the end of their current mortgage deal still have time to act and secure themselves a good deal.
Committing to a low five-year agreement now is likely to pay off if (and when) base rate does rise.