The average two-year fixed rate is now close to 6% as major lenders raise the cost of deals sharply.
In December, the average two-year fixed deal was 2.34%.
The recently re-priced deals have tended to be from major lenders who want relatively low-risk borrowers. Those homeowners who have high debt levels, or who may have missed repayments on credit, may find their choice is much more limited in the short-term. Lenders look at the long-term cost of borrowing, and potential demand, and try to stay a step ahead of the Bank of England when setting the rates for fixed rate deals.
NatWest did so on Sunday, a highly unusual day of the week to make a change, according to brokers, signalling the speed at which the market is changing.A homeowner borrowing £200,000 on a 30-year mortgage may have been looking at a rate of 3.5% and a monthly repayment of £898 just over a week ago. Now, there are more likely to be facing a 5.5% rate and a monthly repayment of £1,135.
Danmark Seneste Nyt, Danmark Overskrifter
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