The average price of a two-year fixed-rate mortgage has reached its highest level since August at 4.27 per cent.

Data from Moneyfacts.co.uk shows the average price of two-year fixed rates fell from 4.27 per cent in August to a low of 4.16 per cent in September before increasing to 4.22 per cent in October. Prices remained at 4.22 per cent in November before edging up to 4.24 per cent in December.

The average price of a two-year tracker has risen by 0.11 per cent in the past month to 3.5 per cent, which is the most expensive these products have been since last October, when prices peaked at a 16-month high of 3.58 per cent.

on five-year fixed- rate pricing has been less dramatic, with the average price edging up slightly from an all-time low of 4.58 per cent last December to 4.61 per cent in January.

Your Mortgage Decisions director Dominik Lipnicki says: “Prices will continue to creep up across the board in the next few months.
“Base is still at an historic low so it is obvious that lenders are trying to make more profit on their mortgages by increasing prices.”

Our thoughts are that mortgage interest rates will continue to steadily climb due to the pressures being put upon bank funding due to the euro crisis. We feel that this will continue for the next couple of years and then as bank funds eases this will likely be matched by an increase in central bank rates. So the consensus is that now is still an excellent time to review your current mortgage deal. Call Simplicity on 0845 6886168 to speak to one of our professional independent mortgage advisers