Average two-year fixed mortgage surpasses 4%

According to figures from Moneyfacts.co.uk, since the start of this month, the overall average increased by 0.14% and has reached 4.09%. In December 2021 this rate sat at 2.34%, meaning it has risen by 1.75% since then, 0.10% more than the base rate has increased over the same period.

As for the overall five-year fixed average, this has gone up by 0.16% since the first of this month to 4.24% - a rise of 1.60% compared to last December. However, over that same period, the differential between the two and five-year average rates has shrunk from 0.30% to 0.15%. 

The narrowing cost benefit of two year compared to five-year fixed rates may incentivise consumers to consider the added security of fixed payments for a longer term. 

There has not been much change, however, for the average 10-year fixed average rate - increasing by 0.01% to sit at 4.20%, making it 0.04% lower than the current average five-year fixed rate.