Recent data from Moneyfacts has revealed an increase in the average two-year fixed mortgage rate. This is the first time in over two years that the average rate has risen and could have a significant impact on those looking to purchase a home.
The average two-year fixed mortgage rate has increased from 2.37% to 2.45%, according to Moneyfacts. This is the first time since July 2017 that the rate has risen, and it is the highest level since October 2017. The rise in the rate could have a significant impact on those looking to purchase a home, as it could mean an increase in the amount of money they need to borrow.
The increase in the rate could be attributed to a number of factors. Firstly, the Bank of England base rate has risen over the past year, which has had a knock-on effect on mortgage rates. Secondly, lenders are becoming increasingly cautious about lending money due to the uncertainty caused by Brexit. This means that lenders are more likely to increase their rates in order to protect themselves from any potential losses.
The rise in the two-year fixed mortgage rate could also have an impact on those looking to remortgage their home. Those who are currently on a two-year fixed rate may find that their rate is no longer competitive, meaning they could end up paying more for their mortgage than they would have done previously.
It is important for those looking to purchase a home or remortgage their existing home to shop around and compare different mortgage rates in order to get the best deal. It is also important to bear in mind that the rate could rise further if the Bank of England base rate continues to increase.
Overall, Moneyfacts data has revealed an increase in the average two-year fixed mortgage rate. This could have a significant impact on those looking to purchase or remortgage a home, as it could mean an increase in the amount of money they need to borrow. It is therefore important for those looking for a mortgage to shop around and compare different rates in order to get the best deal.