Average five-year fixed mortgage rates now above 6%
Following last month’s interest rate hike, a typical five-year fixed mortgage deal now has an interest rate of more than 6%.
Last month the Bank of England raised interest rates to a 15-year-high of 5% in an attempt to bring down inflation.
Mortgage lenders have been increasing rates and withdrawing deals recently, which has been driving up costs for homeowners.
PM Rishi Sunak has urged homeowners to “hold their nerve” over rising rates.
On Tuesday, the average rate for a five-year fixed mortgage stood at 6.01% according to Moneyfacts. The average two-year fixed deal is now 6.47%.
The last time those rates topped 6% was in November last year when interest rates rose sharply in the aftermath of the Liz Truss disastrous mini-budget.
There was a period of calm that followed the appointment of Rishi Sunak as PM, and Jeremy Hunt as Chancellor, but in recent weeks the rates have climbed steadily again.
