BORROWERS could face a surge in mortgage costs as rates increase and lenders withdraw their cheapest deals.It follows an increase in swap rates, which are used to price fixed rate mortgage deals.The two-year swap rate was 4.06% as of 7 October, while the five-year swap rate was 3.81%, according to Chatham Financial., all fixed rates offered at 65-75% loan-to-value for new borrowers, as well as all two and five year fixed remortgage rates at 80% LTV, will rise at on Friday.
SVRs are generally higher than other types of mortgage, so if you're on one then you're likely to be paying more than you need to.As a result, these are the main products that lenders are currently increasing. This means that over a million households also face the prospect of their monthly payments increasing by hundreds of pounds.Meanwhile, the average five-year fixed residential mortgage rate is 5.21%, a decrease from 5.37% the previous month.IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time.