The average five-year fixed rate mortgage has increased for the 10th month in a row to 4.08%, said Moneyfacts.

This is the first time since October 2014 that average rates have topped 4%, according to the financial information provider.

Following a monthly rise of 0.19%, five-year fixes are now 1.44 percentage points above their level in December 2021, when they were 2.64%.

Short-term deals rise

The average overall two-year fixed rate has also risen for a 10th consecutive month. Now 3.95%, this has increased by 0.21% month-on-month and sits 1.61% higher than in December 2021. It’s also at the highest level for nine years.

Standard variable rates (SVR) have reached an average 5.17% – the highest level on Moneyfacts’ records since December 2008.

The rate rises come in response to the Bank of England increasing its Base Rate six times since December, from 0.1% to 1.75%.

Low shelf life

Mortgage products now only have an average shelf life of 17 days before they are pulled by lenders, said Moneyfacts – a record low. This means borrowers have a small window of opportunity to bag a good deal when they find one.

Mortgage availability has dropped too. August began with 4,407 mortgages on offer, 149 fewer than at the start of July, meaning that the level of choice for borrowers has fallen again.

Eleanor Williams, finance expert at Moneyfacts, said: “Not only are there now fewer deals for borrowers to choose from, but the average shelf life for mortgage deals has plummeted to a new low of just 17 days this month. This reflects the speed at which providers are updating their offerings, but also means that those looking for a new mortgage have the shortest length of time we have ever recorded to try to secure their deal of choice.

“The support and advice of a broker in finding the best option for an individual’s circumstance and in helping to assess their eligibility has likely never been more vital as the mortgage landscape remains extremely changeable.”