A number of high street banks have made changes to their fixed rate mortgages over the past seven days. It comes after Moneyfacts’ data recorded a recent drop in mortgage availability, with over 7% of the market withdrawn in the week leading to the end of May.
Much of this was to do with the Office for National Statistics’ inflation figures for April, which suggested the Bank of England might have to raise rates further to quell the increasing cost of living.
From 24 May, when the Office for National Statistics released its latest figures for inflation, to 4 June, the total number of mortgages on the market dropped by 581. However, there are signs of a recovery, with 426 products returning as of today.
These mortgages are returning at higher rates. The average two year fixed deal now stands at 5.92%, up 0.10 percentage points from last Thursday. If this figure were to breach 6%, it would be the first time since December last year, when fixed rates were on a downward trajectory after Rishi Sunak took over from Liz Truss as Prime Minister.
The average five year fixed rate is also on the rise and now stands at 5.56%, up from the 5.17% at the beginning of the month. According to Moneyfactscompare.co.uk calculations, this translates to roughly £46 more a month for the initial term. These estimates are based on a borrowed sum of £200,000 over 25 years, but you can personalise your results by using our calculator on our website.
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