"The cost of mortgages does appear to be on the rise as a whole, fuelled by the base rate rise in August"
The average SVR has risen steadily from 4.75% in December 2017 to 4.90% this month.
Fixed rates have also risen year-on-year, increasing following August's rate rise but remaining steady since September as lenders seek to remain competitive.
Average two-year fixed rates have increased by 16bps in twelve months, from 2.35% a year ago to 2.51% today.
Five-year fixed rates have seen a smaller increase, from 2.88% to 2.92%.
Rachel Springall, finance expert at Moneyfacts, said: “The cost of mortgages does appear to be on the rise as a whole, fuelled by the base rate rise in August, but as we have seen in the last month, lenders are still heavily invested in attracting new borrowers and retaining those who may be coming off a deal at a quieter period of the year.
“Lenders will be focused on meeting their annual lending targets, but at the same time, it will be increasingly difficult to improve their range by rate alone due to the squeeze in their margins. Therefore, providers have revisited their incentive packages as a way to entice prospective borrowers, such as by offering cashback or creating a bundle of cost-saving incentives upfront.
“Those borrowers who are looking to remortgage will find that motivation to switch from an SVR has never been greater. Today, the average two-year fixed rate mortgage stands at 2.51%, but the average SVR is a monstrous 4.90%. This means a borrower could save over £3,000 within the first year of their mortgage (based on a £200,000 mortgage over a 25-year term on a repayment basis) if they switched to an average fixed rate deal.
“As we move into next year, borrowers may well be cautious to move home or buy their first property due to economic uncertainties, but those who are looking to save some cash on their mortgage would be wise to revisit the Best Buys to fix into a better rate or package before rates rise further still.”
