The average rates for two and five-year fixed rate mortgages have more than doubled in around eight months, with average monthly payments rising by over £100 per month.

According to L&C’s remortgage tracker, the lowest average two and five-year fixed rates from the top ten lenders stand at 2.36 per cent 2.46 per cent respectively.

The fee-free broker said this is an increase from “historic lows” of 0.89 per cent for a two-year fixed rate and 1.05 per cent for a five-year fixed rate in October last year.

The report said that monthly payments for a typical £150,000 repayment mortgage over a 25-year term could be around £100 more per month than they were in October last year, meaning annual mortgage payments could be pushed up by more than £1,200 per year.

It added that the top 10 lenders’ average reversionary rates stood at 4.34 per cent at the start of the May, and this would only increase following the Bank of England’s decision to increase the base rate to one per cent earlier this month.

David Hollingworth, associate director at L&C Mortgages, said: “The market is moving at breakneck speed as lenders try to manage their product ranges and lending volume, often resulting in products lasting days rather than weeks.

“That presents a real challenge for borrowers trying to keep on top of market movements but with continuing increases in mortgage rates it’s all the more important for borrowers to keep a tight rein on their mortgage.”

He said that there were “impressive savings” to be made over lenders’ variable rates and that could increase as further base rate increases are expected.

“Cutting the mortgage rate could help deal with higher living costs and build in security against further interest rate rises. However, increasing outgoings are also likely to feed into lender affordability criteria, so borrowers should seek help in pinpointing the best deal,” he said.