Average five-year fix rises above 6%

The average rate for a five-year fixed mortgage has climbed to 6.01%, adding £1,488 a year to repayments on a typical £200,000 25-year mortgage. According to financial information service Moneyfacts, the average two-year fixed deal is also now 6.47%. The increase follows the Bank of England’s decision to increase the base rate to a 15-year high of 5% as it looks to bring down inflation. The Moneyfacts analysis also highlights how savings rates have not matched the rapid increase in mortgage charges. While the average rates for two and five year fixed mortgages are both above 6%, the average easy access savings rate is 2.45%. Nick Mendes, from the mortgage broker John Charcol, said: "[Most] big high street lenders have already made substantial increases to their rates which means they sit outside of the best buys. Fingers crossed that rates might stop rising soon if swap rates calm down, although we may see increases in the future if there isn't substantial progress in bringing down inflation."
BBC News (04/07/2023)   Financial Times (04.07/2023)   The Independent (04/07/2023)   The Times (04/07/2023)