According to Moneyfacts figures, the average two-year fixed rate as of today was 5.75 per cent, and the average five-year fixed rate came to 5.48 per cent.
This compares to Monday last week, when the average two-year fixed rate came to 4.75 per cent and the average five-year fixed rate was estimated at 4.76 per cent.
In December last year, the average two-year fixed rate was 2.34 per cent and the average five-year fixed rate was 2.64 per cent.
Moneyfacts figures also show that the total residential mortgage count stands at 2,262, a fall of 1,218 since last week.
This includes a record fall of 935 products between 27 September and 28 September, which is more than double the previous record fall of 462 on 1 April 2020.
The mortgage market has been very volatile over the past week as several mortgage lenders briefly paused new business lending, pulled and repriced their new business fixed rate deals.
This was due to uncertainty in the financial markets following Chancellor Kwasi Kwarteng’s mini Budget, which included several tax cuts, that led to a falling pound and soaring swap rates which made it harder for lenders to price their products.
Swap rates skyrocketing
Swap rates have been increasing dramatically, with two-year Sonia swaps as of today standing at 5.02 per cent and five-year Sonia swaps coming to 4.74 per cent.
This compares to 3.75 per cent for a two-year swap and 3.27 per cent for a five-year swap at the end of August this year.
It is also up from 0.51 per cent for two-year swap and 0.75 per cent of a five-year swap at the end of September last year.
Sources said normal variations in swap rates were between five to 10 basis points but following the mini Budget rises have been between 100 to 150 basis points over the course of a few days.
