According to Rightmove, the average two-year fixed rate at 60 per cent loan to value (LTV) has increased by 0.26 per cent to 5.67 per cent, whilst the average five-year fixed rate at the same LTV tier has gone up by 0.21 per cent to 5.26 per cent.
The average two-year fixed rate at 75 per cent LTV has increased by 0.19 per cent to 5.77 per cent, and the average five-year fixed rate has risen by 0.17 per cent to 5.36 per cent.
At 85 per cent LTV, the average two-year fixed rate has climbed by 0.21 per cent to 5.93 per cent and the average five-year fixed rate has increased by 0.19 per cent to 5.5 per cent.
The average two-year fixed rate at 90 per cent LTV has risen by 0.21 per cent to 6.09 per cent and its five-year fixed rate equivalent has climbed by 0.2 per cent to 5.67 per cent.
At 95 per cent LTV, the average two-year fixed rate has gone from 6.36 per cent to 6.62 per cent, and the average five-year fixed rate has jumped by 0.06 per cent to 5.87 per cent.
Rightmove’s mortgage expert Matt Smith said that rates had continued to rise as the market adjusted to “two sets of disappointing inflation numbers”.
He continued: “The Bank of England’s message that it still expects inflation to ease significantly in the second half of the year is reflected in the difference between two-year and five-year fixed deal increases this week, with the former seeing the larger average increase.
“Further increases will come as disappointing news to those looking to take out a mortgage soon, who will be wanting stability to be able to plan for what they can afford. However, after weeks of significant increases we’ve seen swap rates, the underlying costs of mortgages lenders, remain relatively stable since last week’s base rate announcement.”
Smith added: “So, while we may still see some further increases in the short term as this market adjustment continues, we’d expect the pace of change to slow down – particularly for five-year fixed rate products – and hopefully that desired period of stability arrives in the medium term.”
