Average fixed rates now above 7%

Borrowers looking to fix repayments for a longer period of five years are also facing high interest rates of almost 2% above the Bank of England’s base rate. Moneyfacts.co.uk’s latest figures suggest the average two-year fixed rate mortgage is now charging an interest rate of 7.02%. Darren Cook, mortgage expert at Moneyfacts.co.uk, says the rising cost of fixed rates is tied to recent developments in the money markets. “This increase is a result of the two-year swap rate reaching 6.52% last week. Any increased cost to lenders in arranging the funds on the money market is passed on to cus...