According to Uswitch, the average two-year fix increased from 2.34 percent to 6.04 percent and average five-year fix from 2.64 percent to 5.65 percent.
This has been primarily due to the Bank of England’s decision raise interest rates which has had a knock-on effect on raising mortgage repayments.
Furthermore, the average SVR (standard variable rate) in the country is currently sitting at 8.19 percent
For context, this is almost double the 4.40 percent SVR for December 2021 which indicates how drastic a change this has been.
Kellie Steed, Uswitch’s mortgage expert, shared what many are expecting to happen in regard to mortgages over the next couple of months.
She explained: “The majority of economists expect that we’ll see mortgage rates continue to fall next year as average swap rates have now fallen for five months in a row.
“Some even expect a one percent total cut in the base rate, with suggestions the base rate will fall as low as 4.25 percent by the end of 2024.
“Ahead of the base rate announcement, lenders continued to cut fixed rates, which shows that this base rate announcement was also anticipated.”
Despite signs of improvement in the economy, the mortgage expert warned that those coming to an end of their deals still have historically higher rates to contend with which must be taken into account.
Ms Steed added: “With SVRs still significantly higher than the average two-year fixed-rate deal, there’s a tough decision to be made for those coming out of their initial deals this month.
“While rates are declining and base rate cuts are expected in 2024, it’s unlikely they will be substantial enough to warrant staying on your SVR for months. It’s a good idea to take advice from an experienced broker before making a final decision on remortgaging.
“While it may be wise to be cautious when locking in a longer rate, depending on your circumstances, if your due to fall onto an SVR, rates on short fixes are worth comparing.”
