during August the average two-year fixed rate rose by 0.16% from 2.08% on 1st August to 2.24% on 1st September, it’s the largest increase since July 2009
First-time buyers that who looking to lock into a fixed rate mortgage deal are being urged to act quickly as the rates on fixed deals have risen sharply in the last month. In fact, during August the average two-year fixed rate rose by 0.16% from 2.08% on 1st August to 2.24% on 1st September, it’s the largest increase since July 2009. Meanwhile, the average rate on a five-year fixed deal increased by 0.15% from 2.34% on 1st August to 2.49% on 1st September – its biggest rise since March 2011.
While these rates are still some 0.19% and 0.25% lower than prior to lockdown, the level of increases seem to have gathered pace, doubling over the last two months. If these were to carry on their current trajectory, within the next couple of months, consumers could face average rates in excess of those available prior to the onset of the pandemic.
This is more bad news for First-Time Buyers looking to lock into a new mortgage deal, as our research found that the number of product deals fell by 114 between August and September, falling from 2,526 available on the 1st August.