Amid the turmoil which followed the mini Budget, mortgage lenders pulled their products at pace as they re-priced deals before coming back to the market with fresh rates.

Two-year fixes hit new highs

As product choice has increased to 2,430 as of today, mortgage rates have also soared. Just yesterday, the average rate for a two-year fix breached the 6% mark, climbing from 5.97% on 4 October to 6.07% on 5 October.

However, overnight it has climbed further still. According to data from Moneyfacts, the average two-year rate now stands at 6.11%.

The last time the average two-year fixed rate mortgage was 6% or more was back in November 2008 at 6.31%.

On a £200,000 mortgage over a 25-year term, borrowers can expect to pay £1,302.08 per month, up from £1,219.83 at the start of October.

High five-year deals

Meanwhile, there has been a lot of movement on five-year mortgage deals too. These have now breached 6% for the first time since February 2010.

Moneyfacts data revealed yesterday the average rate stood at 5.97% but as of today, it has climbed to 6.02%. The last time it was at this level was in January 2010 when it stood at 6.09%.

For borrowers, this takes monthly payments from £1,196.14 from the start of the month to £1,291.05 today.

Since the start of the month, the rates have climbed from an average of 5.43% and 5.23% respectively. And compared to this time last year, the rates are a far cry from the typical 2.25% and 2.55% offered to homeowners.

Overall, product choice has dwindled from the 5,315 available in December 2021, before the seven consecutive base rate hikes and the market turmoil in the last couple of weeks.

‘Rates not seen in a decade’

Rachel Springall, mortgage spokesperson at Moneyfacts, said: “Borrowers may well be concerned about the rise to fixed mortgage rates but it is essential they seek advice to assess the deals that are available to them right now.

Fixing for longer may seem more appealing, particularly as both the average two- and five-year fixed rates rise to levels not seen in over a decade. Consumers must carefully consider whether now is the right time to buy a home or to wait and see how things change in the coming weeks.

“The drop in product availability may be worrying but many lenders have been vocal to stress their withdrawals are temporary amid interest rate uncertainties.”