"Two-year fixed rates have been gradually rising since September 2017 when they hit a low of 2.17%."
The latest Moneyfacts data shows that the average two-year fixed rate is now 2.54% - the highest rate since July 2016.
Its figures show that two-year fixed rates have been gradually rising since September 2017 when they hit a low of 2.17%.
On the 2nd of August the Bank of England raised Bank Rate to 0.75%. However average two-year fixed rates rose by under 2bps between the 3rd - 10th of August, suggesting that many lenders had already predicted the rate rise and increased their rates before the MPC's decision was published.
The majority of lenders have not announced increases to their fixed rates yet and those who have, such as Sainsbury's Bank, have increased rates by less than 0.25%.