Average two-, five- and ten-year fixed residential mortgage rates are approaching levels not seen in a decade.
Moneyfacts data shows the two-year average rate is 3.99%, while ten years ago the rate was 4.62; a five-year average fix is now 4.14% and was 4.73% in August 2012, while a 10-year fix is now at an average of 4.19%, down from 4 .83% ten years ago.
In particular, average fixed rates have not increased since last Friday, despite the rise in the base rate to 1.75% on Thursday.
However, five years ago the rates for a two-, five-, and ten-year solution were significantly lower, averaging 2.24%, 2.8%, and 3.23% respectively.
A Moneyfacts spokesperson said: “Average mortgage rates are climbing to levels not seen in nearly a decade; this month, the two-year average global fixed rate reached our highest level in more than nine years, while the five-year equivalent for August 2022 is not too far behind, exceeding 4% for the first time in nearly eight years.
“This means that there could well be a number of potential borrowers who are coming to the end of their current mortgage contract and who might be a little surprised when they come to get a new fixed rate for their next mortgage, because they might face higher costs.
“There is no guarantee that rates will not continue on this upward trajectory following recent base rate hikes, so it may be wise for potential borrowers to seek advice and up-to-date market knowledge from a qualified adviser to support them, to check what mortgage options might be available to them and whether they can combat the cost of living crisis by entering into a new mortgage agreement which could reduce their monthly expenses.