Mortage rates have been rising all year, and they’re still going up, according to figures published by Moneyfacts.

The financial information provider said that the average two-year fixed rate is 4.24%, the highest since January 2013 (4.24%), and 1.90 percentage points above where it sat in December 2021 (2.34%).

The equivalent average five-year fixed rate of 4.33% is the highest since November 2012 (4.47%), and up 1.69 percentage points from December 2021 (2.64%).

Soaring costs

Moneyfacts said that borrowers with a two-year fix coming to an end soon will ‘be feeling rather concerned’ that at 4.24% the average rate is now two percentage points higher than when they secured their deal in September 2020.

It said this could make a difference of over £200 per month more than they have been paying (based on a typical £200,000 mortgage).

But doing nothing isn’t an option either. Standard Variable Rate or ‘revert to’ rates (SVR) are up too, for the ninth month in a row, by 0.23 percentage points to 5.40%. Moneyfacts said this is the largest monthly rise on its records going back to December 2007. Those who fall onto this could see their payments rise by an even more dramatic £344, and would not be protected from any future rate rises.

Drop in product availability

The number of products in the residential mortgage market also plummeted by 517 over the last month to leave just 3,890 on offer for September, the lowest number seen in over a year, said Moneyfacts.

Eleanor Williams, finance expert at Moneyfacts, said: “Would-be mortgage borrowers will find that the level of product choice they are faced with has dropped again this month, now down to a level not seen in over a year.

“It’s unlikely to be a surprise that average rates have continued to march upwards, with both the average overall two- and five-year fixed rates rising for the 11th consecutive month.

“However, it’s important borrowers are not put off exploring their options, as the average SVR or revert to rate has also risen, currently sitting at a 5.40% – the highest we have recorded in over 13 years.”