Research from Moneyfacts reveals that the average rate charged on a two-year fixed rate mortgage, across all loan-to values, increased by 0.09% in one month - the largest increase in the average rate since February 2012 when it rose by 0.13%.
Increases were seen on fourteen (70%) of the twenty business days in April and decreases on just three days (15%). This means anyone applying for a two-year fixed rate mortgage on 1 April would have been offered an average rate of 3.52%, but by 30 April it would have risen to 3.61%, or an additional £290.88 over the term for a mortgage of £250,000.
Sylvia Waycot, Editor at Moneyfacts, said:
"The two-year fixed rate mortgage has been the favoured option for the risk-averse borrower who enjoys the knowledge that they know what their mortgage will cost each month. However, as these deals have come to an end, many borrowers have reverted to the variable rate of their lender, as in many cases it has proved a cheaper alternative.
"However, the average two-year fixed rate increased fourteen of the twenty business days in April and the average five-year fixed rates have fared no better, increasing 15 out of 20 working days in April.
"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."
