According to Moneysupermarket, the average two-year fixed rate has risen to 4.15% from 3.82% in October 2011. The increase means a difference of £327.72 per year for repayments based on a £150,000 mortgage.

The analysis found that five-year fixed rates hit a low in January with an average rate of 4.57% but has crept up to 4.72% adding an extra £153.72 over the course of a year.

The average rate for two-year trackers stands at 3.63% up from its lowest level in August 2011 at 3.37%, hitting borrowers with an extra £250.92 over the year.

SVRs have also increased on a number of deals at lenders such as Halifax, Royal Bank of Scotland, the Co-operative Bank and Bank of Ireland.

Clare Francis, mortgage expert at Moneysupermarket.com, said borrowers should act sooner rather than later to secure one of the current rates in case they rise further.

Sponsored

Industry, not regulation, must lead later life lending change

Sponsored by Suffolk Building Society Intermediaries

“An increasing number of people have opted to stick with their existing lender and move onto the SVR when their fixed or introductory tracker or discounted period ended, as opposed to remortgaging elsewhere. However, as around 1m borrowers are about to find out next month, many SVRs can rise even if base rate doesn’t.