Two-year fixed mortgage rates in the UK have risen to the highest level since the 2008 financial crisis, adding to the pressure on households.
A typical two-year deal has risen to 6.66%, up from 6.63% on Monday, according to data provider Moneyfacts.
It is the highest rate since 2008 – bad news for homeowners whose deals are coming to an end and who need to remortgage soon. It means they will be paying hundreds of pounds more each month.
The rise takes the cost of two-year mortgages slightly above the peak of 6.65% reached last autumn, when the borrowing market was rocked by Kwasi Kwarteng’s “mini-budget” package of unfunded tax cuts.
The average five-year fixed mortgage raterose to 6.17% on Tuesday from 6.13% on Monday.
Moneyfacts said there were fewer deals available, a total of 4,344 residential mortgage products, down from 4,631 on Monday.
Savings rates have not risen as fast as mortgage rates. The average rate on an easy access savings account was unchanged on Tuesday at 2.53%.