Mortgage rates rising fast
With 2-year fixed rates increasing on 14 out of 20 business days, anyone applying on 1 April would have been offered an average rate of 3.52%, but by 30 April it would have climbed to 3.61%, accounting to an additional £290.88 over the term of a £250,000 mortgage.
Sylvia Waycot, editor of Moneyfacts.co.uk, said: “It is a very different mortgage market to four months ago when the government withdrew its controversial FLS, thereby cutting access to cheap money.
“Banks are facing scrutiny over balance sheets via stress tests and capital holding requirements, plus there are increased costs of regulation and processes such as MMR.
“Don’t make the mistake of thinking that we need a change to base rate to increase the cost of mortgages, as prices are creeping upwards now. So if fixed rates are your preference, now is the time to fix.”