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.
"The new rates reflect the continued increase in mortgage market pricing over recent weeks," a spokesperson for Halifax said. As always, there is uncertainty over the longer-term trend for mortgage rates. People will have to consider how much they can borrow, and what lenders will judge them to be able to afford.
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