Two and five-year fixed mortgage rates at highest average levels since 2008

The average two and five-year fixed mortgage rates available are at their highest levels since 2008, pushing up costs for borrowers, according to analysis.

Across all deposit sizes, the average two-year fixed mortgage on the market on Tuesday had a rate of 6.43%, according to Moneyfacts.co.uk.

The average five-year fixed-rate also climbed higher, to 6.29%.

The average two-year fixed-rate mortgage is at its highest level since August 2008, Moneyfacts said.

The average five-year fixed-rate is at its highest level since November 2008.

Average two and five-year fixed rates breached 6% last week and have continued to climb as lenders price their deals higher amid the economic fallout from the mini-budget.

Bank of England base rate rises, amid high inflation, have also been putting an upwards pressure on borrowing costs.

Last week, Moneyfacts calculated that, based on Thursday’s rates, someone with a £200,000 mortgage paying it back over 25 years could end up paying around £5,000 per year more for a two-year fixed-rate deal than they would have last December.

The choice of mortgage products continues to widen, although it remains significantly lower than on the day of the mini-budget, when 3,961 products were available.

Some 2,931 mortgage products were available on Tuesday, Moneyfacts said, up from 2,905 on Monday.