Interest rates expected to rise for first time in over three years

As of 4 November, the average two-year fixed residential mortgage rate was 5.96%, while the average five-year rate stood at 5.99%, according to financial information service Moneyfacts.

It means anyone rolling off a five-year deal faces a much bigger mortgage bill.

Broker L&C said that average mortgage rates offered by the 10 biggest lenders suggested some borrowers now faced paying almost £5,000 more each year in repayments on a £200,000 mortgage over 25 years than those who secured a remortgage deal in 2021.

Five years ago, the average five-year fixed remortgage rate among the 10 biggest lenders was 1.30%.

Relatively high fixed rates have prompted some people to consider choosing trackers, in the hope that the rate would be lower, even if the Bank rate rises in the coming months.