Average two-year fixes see highest rise in eight years

Average two-year fixes see highest rise in eight years

New Moneyfacts data has revealed that the average two-year fixed mortgage rate has risen from its historic low in October with a 0.12% increase, the highest monthly rise since August 2009.

This rise has effectively wiped out any rate cuts that have occurred in the last six months, seeing the average rate surpass May 2017 figures to reach 2.33% this week. The average five-year fixed mortgage rate has also risen by 0.12% from 2.76% in October to stand at 2.88% today.


Charlotte Nelson, Finance Expert at Moneyfacts, said: “Last month the Mortgage Treasury Report suggested that the speculation surrounding the possibility of a base rate rise would cause mortgage rates to rise in response. Now, November’s figures show that, not only has the average two-year fixed rate risen, but the monthly increase is the largest that has been recorded since August 2009.

The speculation surrounding the announcement on 2 November saw interest SWAP rates rise significantly, with providers having little choice but to factor this into their pricing. Since the start of October, 49% of lenders have increased their rates in some shape or form, with providers preparing for a base rate rise that was seen as a sure thing. The recent base rate rise is likely to only add fuel to the fire and cause rates to rise particularly in the variable rate market.

With rates on the rise even before base rate rose, borrowers should use this as a catalyst to sort out their mortgage. Any borrower sitting on their SVR or coming to the end of a deal should remortgage as soon as possible to avoid disappointment in a market where rates are rising.”

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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