Fixed rate mortgages highest for ten years

In a report released today, emoneyfacts.co.uk, the financial advisers portal has revealed that the average two year fixed rate is now 6.75%, higher than at any time in the past ten years.

The report has reveled that it is not only two year fixed rates that enjoy this dubious accolade, with five year fixed rates themselves averaging 6.72%. Darren Cook of emoneyfacts.co.uk said,

"If the current economic climate persists, it is not unreasonable to predict that we may see a situation where a higher proportion of borrowers are on their lender’s SVR, rather than on an actual mortgage deal.

He went on to mention that if the Bank of England were to maintain or reduce rates, then the standard variable rate offered by some lenders will become very attractive. This is already a feature of the buy to let market where many borrowers coming to the end of their current deal find that the tracker rate they revert to is actually far better than any special offer, especially when charges are taken into account.

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