Mortgage rates have been rising rapidly since October: L&C

Mortgage rates have risen rapidly since bottoming out in October last year, according to analysis by L&C.

The study shows that the average of the 2-year fixed rate products of the 10 major lenders has climbed by 1% since October and the 5-year rates by 0.92%.

The same two-year mortgage would cost more than £800 more a year in March than in October.

More hikes could be on the horizon, potentially as early as next week if talks of further base rate hikes materialize, according to L&C.

The brokerage advises borrowers to remortgage up to six months before the end of their current contract and urges them to consider options before rates rise further.

David Hollingworth, Associate Director of Mortgages at L&C, said: “Mortgage rates have moved rapidly as lenders have been forced to adjust to the impact of market expectations for higher rates on their funding costs. The rapid pace of change is something that might surprise borrowers, especially when the cost of living and other expenses such as energy are already rising as well.

“Fixed rates are still at historically attractive levels, so borrowers should review their current deal to ensure they are on the best deal and protect their position, especially in the face of soaring spending and further increases. base rate potential.

“Rates move quickly and offers come and go quickly, often lasting only a few days before being replaced by higher rates. Borrowers can commit to a current rate up to 6 months in advance, giving them the flexibility to review well in advance and ensuring a smooth changeover when their current contract ends. This could help them get ahead of any further rate hikes.

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