Fixed Mortgage Rates Climbing At 10 Year Record

Published / Last Updated on 13/07/2022

Figures published by Moneyfacts suggest that in anticipation of further Bank of England interest rate increases to curb inflation, fixed mortgage rates are rising by their fastest margins since their records began.

Five-year fixed rates are now at an average of 3.89% pa up from 2.64% in December 2021.  That’s a staggering 1.25% in just 6 months.  It is also the highest recorded in the last 10 years.

Two-year fixed rates have also climbed steadily at an average of 3.74% pa up from 2.34% in December 2021.  That’s an even greater increase at 1.4% in 6 months.


Clearly mortgage lenders and wholesale money markets are expecting rates to rise to curb inflation over the next two years and then to remain stable and only fall back marginally in around 5 years.

Higher interest rates will make it harder to afford property and property prices will slow down and likely fall.

That said, rates are only returning to their more normal post credit crunch crisis levels.  We have had ten years of low interest rates since then and even lower during the pandemic.  We hope this will bring sense back to the property market to slow down property prices increases and the knock effect for rents.

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