According to Moneyfacts, average rates have risen by 0.04 per cent month-on-month to 2.29 per cent for a two-year fixed rate and 2.59 per cent for a five-year fixed rate.
However, these are below the same period last year where two-year fixed rates came to 2.43 per cent and the average five-year fixed rate was 2.7 per cent.
Rates are also down on pre-pandemic levels with the average two-year fixed rate in November 2019 priced at 2.45 per cent and the average five-year fixed rate coming to 2.75 per cent.
The report said the increases were fueled by heightened rates at the 75 per cent loan to value (LTV) tier and lower.
The largest hikes were recorded at the 65 per cent LTV tier, where the two-year fixed rate grew by 0.39 per cent to 2.5 per cent and five-year fixed rate went up by 0.38 per cent to 2.7 per cent.
The total number of products also rose by 217 since last month to 5,156. Residential mortgages now number over 5,000, the first time this has occurred since March, with notable increases at the 90 and 95 per cent LTV tier.
Spokesperson for Moneyfacts, Eleanor Williams, said competition in the mortgage sector had seen record-low initial rates as lenders competed for low-risk business for borrowers with high deposits or equity.
However, she said this was beginning to change as average rates crept up, especially in the lower LTV bands.
She added that product choice was improving at higher LTVs and rates had fallen, with 95 per cent LTVs at their lowest since February 2020.
She said: “As the market remains unsettled, borrowers may consider this an opportune time to explore securing a new deal, as there is no guarantee that rates will not continue to increase in the months to come. Seeking out independent financial advice to assess the changing market is vital to ensure the best possible deal can be secured considering the rate, associated fees and incentives.”
