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.
Movement 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 (pictured) 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 inc-reasing prices.”