Quick links to latest articles:

Fixed-rate mortgage costs increase

By Nicholas Boyle

7 March2011

According to figures from moneyfacts.co.uk, the lifetime cost of a typical five-year fixed-rate mortgage has risen by 2,500 since the start of the year, The Telegraph reports.

The average interest rate charged on this type of mortgage has reached 5.66% - the highest level since June 2010.

It`s also higher than the 5.33% recorded in January. The 0.33% increase we`ve seen since then has added an extra 41.25 a month to mortgage payments on a typical five-year deal - which works out at 495 a year or 2,495 over the lifetime of the loan.

The figures also reveal that the interest rate on the average three-year fixed-rate mortgage has reached 5.19%, while a two-year fixed-rate deal is at 4.58%.

Mortgage providers have been `quick to increase their rates` on fixed-rate deals - which have proved popular with homeowners looking to protect themselves against future rises in their monthly mortgage payments.

Spokesperson at mortgage brokers Private Finance, Melanie Bien, said: "The cost of fixed-rate mortgages has soared since the start of the year as the money markets factor in a rate rise sooner rather than later. Those who have not yet secured a fixed rate will now find that the gap in pricing between trackers and fixes is significant, and likely to increase further still."

Fill in our form to find your mortgage solution

About your mortgage
Amount required:
Your information
Title: First name: Surname:
Telephone 1: Telephone 2: Email:
By continuing, I agree to the privacy policy

Tags: mortgage, fixed rate mortgage, interest rate

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.

All About Money Limited © 2013. All rights reserved. 42 Boston Rd, Sleaford, Lincolnshire NG34 7ER.