2-year fixed rates rapidly rise in November

Ryan Bembridge

November 6, 2017

The average cost of 2-year fixes rose by 0.12% in November to 2.33% – the steepest monthly rise in eight years, Moneyfacts data shows.

It was a similar story for 5-year fixes, as average rates increased by 0.12% to 2.88% in November.

A number of lenders raised rates in expectation of the Bank of England hiking the base rate – which it did from 0.25% to 0.50% last week.

In October 2017 the typical 2-year fix on the market was 2.21%, while it was 2.30% in May 2017 and 2.34% in November 2016.

Charlotte Nelson, finance expert at Moneyfacts, said: “The rise in the average 2-year fixed rate has essentially wiped out any rate cuts that have occurred in the last six months, seeing the average surpass May 2017 figures.

“The speculation surrounding the announcement on 2 November saw interest SWAP rates rise significantly, with providers having little choice but to factor this into their pricing.”

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