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Two-year mortgage rates hit highest level since July 2016 – Moneyfacts

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  • 10/08/2018
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Two-year mortgage rates hit highest level since July 2016 – Moneyfacts
Two-year mortgage rates have crept to their highest level in more than two years, as lenders continue to hike costs.

 

The average fixed-rate on a two-year deal has reached 2.54%, a high not seen since July 2016, according to Moneyfacts data.

Mortgage rates have been rising since September 2017, when the two-year rate was 2.17%.

Last week, the Bank of England raised the base rate to 0.75%, the second time in nine months monetary policymakers have hiked core rates.

The base rate helps determine the cost of mortgage funding for lenders.

A number of banks and building societies have confirmed increases to variable rates, including Standard Variable Rates (SVR)s, since the Bank of England hike.

Sainsbury’s is one lender that has also raised select fixed-rates over the past week.

However, it’s thought the much-trailed Bank of England rate hike prompted some providers to price the rise in ahead of time.

Fierce lender competition in the mortgage market could mean many lenders try to hold-off dramatic action on fixed-rates in the coming weeks and months.

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