Average two- and five-year fixed rates have increased sharply this month, according to Moneyfacts.

The financial information provider said that both have experienced the largest month-on-month rises on its records, which go back 15 years.

The two-year fixed rate average has now risen for nine months in a row to 3.74%. It has gone up 0.49 percentage points in the last month alone and is a staggering 1.40% above its level in December 2021.

Five-year fixed rates have rocketed to 3.89%, their highest level since November 2014 (3.93%) and up 0.52 percentage points in the last month.

Trackers rising

The average two-year tracker rate has also climbed to 2.74% after an increase of 0.20% compared to last month and is now the highest recorded since June 2014 (2.75%).

The average Standard Variable Rate (SVR) has breached 5% for the first time in more than 13 years. Having risen by 0.15% this month, it now sits at 5.06%.

Eleanor Williams, finance expert at Moneyfacts, said: “Product choice took another dip this month as mortgage lenders continue to revise their ranges in the face of ongoing economic uncertainty.

“As product ranges have condensed, average fixed rates have continued on an upwards trajectory, with two- and five-year fixed averages at all loan-to-value (LTV) tiers rising this month.

“Those switching from the average SVR to the current average two-year fixed rate might be able to make monthly savings of nearly £150. While we remain in a cost of living crisis, with pressure on many household budgets, it’s vital prospective borrowers explore their options and are not disheartened by recent rate rises. There are products in our top tables with even more competitive rates still available, and therefore some could possibly reduce their outgoings on their mortgage by even more.”