![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/mortgage-rates-average-five-year-fix-rises-above-6/&media=https://uknews.evprotec.com/wp-content/uploads/2023/07/130282429_estateagent-epa.jpg&description=Image source, Getty Images A typical five-year fixed mortgage deal now has an interest rate of more than 6%. It comes after the Bank of England raised interest rates a 15-year high of 5% last month, as it tries bring down inflation. Mortgage lenders have been increasing rates and withdrawing deals recently, driving up costs for homeowners. Prime Minister Rishi Sunak has urged homeowners "hold their nerve" over rising rates. On Tuesday, the average rate for a five-year fixed mortgage sod at 6.01%, according the financial information service Moneyfacts. The average two-year fixed deal is now 6.47%. The last time those rates both pped 6% was in November last year, when interest rates rose sharply in the aftermath of then-Chancellor Kwasi Kwarteng's mini-budget. But after a period of calm they have climbed steadily again in recent weeks. However, while mortgage rates have risen rapidly, the rates on savings accounts have not gone up as fast. With the average rate for a two-year mortgage now 6.47%, the average easy access savings rate is 2.45%, according Moneyfacts. That is a gap of 4.02 percentage points. Bank bosses have been summoned by the Financial Conduct Authority explain the low saving rates on offer. A year ago, typical rates on fixed mortgage deals were closer 3%. The Bank of England has raised interest rates 13 times since December 2021. The idea is that by making it more expensive for people borrow money, and more worthwhile for them save, they will spend less and price increases will cool. But inflation - which measures the rate at which prices are rising - remained stubbornly high at 8.7% in May. The prime minister has pledged halve inflation by the end of the year, and has backed the Bank of England's rate rises. The Bank rate is a key influence on mortgage rates. Expectations that the Bank could continue raise rates, and that they will stay higher for longer, have been reflected in the funding cost of mortgages, hitting new borrowers, and those trying rem){kind=link}
A typical five-year fixed mortgage deal now has an interest rate of more than 6%.
It comes after the Bank of England raised interest rates to a 15-year high of 5% last month, as it tries to bring down inflation.
Mortgage lenders have been increasing rates and withdrawing deals recently, driving up costs for homeowners.
Prime Minister Rishi Sunak has urged homeowners to “hold their nerve” over rising rates.
On Tuesday, the average rate for a five-year fixed mortgage stood at 6.01%, according to the financial information service Moneyfacts. The average two-year fixed deal is now 6.47%.