According to the latest Rightmove figures, the average two-year fixed rate at 60 per cent loan to value (LTV) has increased 0.17 per cent to 6.26 per cent over the past week.
Its five-year fixed rates at the same LTV have gone up by 0.2 per cent to 5.79 per cent during the same period.
At 75 per cent LTV, two-year fixed rates have climbed by 0.2 per cent to 6.29 per cent and five-year fixed rates have increased by 0.23 per cent to 5.79 per cent over the last week.
Its two-year fixed rate at 85 per cent LTV has risen by 0.19 per cent to 6.4 per cent and its five-year fixed rate at the same LTV tier has gone up by around 0.21 per cent to 5.9 per cent in a week.
Two-year fixed rates at 90 per cent LTV has increased by 0.14 per cent to 6.47 per cent, with five-year fixed rates rising by the same amount to 5.95 per cent.
At 95 per cent LTV, the average two-year fixed rate had gone up by around 0.16 per cent to 6.91 per cent and its five-year fixed rate has gone up by around 0.13 per cent to 6.23 per cent.
For first-time buyers, the average monthly mortgage payment for five-year fixed rate at 85 per cent LTV for a typical first-time buyer property came to £1,224, up by £20 per month compared to last week.
A five-year fixed rate at 60 per cent LTV mortgage on a first-time buyer property would warrant an average monthly mortgage payment of £855, an increase of £13 per month compared to last week.
Swap rates have started to ease but UK inflation figures key
Rightmove’s mortgage expert Matt Smith said that despite the rate rises in the past week, swap rates, which is the underlying cost of mortgages for lenders, have “responded positively to the news that last week’s US inflation figures fell to a two-year low, and this has taken some pressure off lenders to increase rates further”.
He added: “Some commentators have said this may be the peak for mortgage rates, but the UK inflation data for June is key to what happens next with the pricing of fixed rates.
UK Consumer Price Index data out today confirmed a fall to 7.9 per cent from 8.7 per cent in May.
Smith said that the best-buy, short-term fixed deals are approaching six per cent, which is “likely to be a concern to those looking to take out a mortgage soon”.
He noted: “Some buyers may be putting their moving plans on hold while they reassess higher costs and the impact on their budgets, and this has impacted the number of home sales agreed in June.
“But overall, demand from buyers is still three per cent higher than 2019’s more normal market level. Estate agents are reporting that homes that are realistically priced are still attracting motivated buyers who don’t want to miss out on the right property that is not over-priced, and that they can still afford.”
