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Two-year fixed mortgage rates at highest level since 2016

Written by: Lana Clements
Mortgage rates on two-year fixed deals have leapt to their highest level since 2016 as lenders reprice ahead of an expected Bank of England hike, analysis has shown.

The average two-year rate has this week reached 2.41%, a high last seen in September 2016, according to Moneyfacts data.

Rates have been steadily building over the past six months from a typical 2.17%, and since February alone have increased from 2.34%.

It comes as the Bank of England is expected to raise the base rate again in May, from its current levels of 0.5%.

Borrowers have been urged to act to secure a competitive deal sooner rather than later.

Charlotte Nelson of Moneyfacts, said: “In recent weeks the trend of mortgage rates rising appears to be more than just a blip.

“As we move further into the year, borrowers will be expecting a move by the Bank of England.

“Therefore, if they haven’t done so already, they should consider a fixed rate deal so they can avoid inflated repayments.”

Related: See’s How to remortgage guide for more information.

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