 The average two-year fixed-rate homeowner mortgage rate has soared to levels last seen 15 years ago. According to Moneyfactscompare.co.uk, the rate reached 6.66% this morning, up from 6.63% yesterday. The last time they were higher were in August 2008. This is also up from the last peak of 6.51% on October 20 last year, following the announcement of the new mini-Budget under then-new prime minister Liz Truss. It is expected that interest rates will be higher for longer as the Bank of England tries to bring high inflation under control. Speaking from Vilnius, current PM Rishi Sunak said: 'I know things are difficult for many families across the country. 'The UK is not alone in experiencing a rise in interest rates… the crucial thing that we have to do is bring inflation down. The rate reached 6.66% this morning, up from 6.63% yesterday (Picture: In Pictures via Getty Images) Bank bosses said they have not yet seen a substantial increase in the number of customers in arrears (Picture: Getty Images) 'That's how we're going to ease the burden for families. That's how we're going to stop the rise in interest rates. And that's why my priority is to halve inflation. 'Of course, that is proving to be more persistent than people thought, but that doesn't mean the course of action is wrong. We've got to stick to it.' The Bank of England uses base rate rises as a tool to try to subdue inflation, and the current base rate is currently at 5% after 13 rises in a row. Average two and five-year fixed-rate mortgages recently jumped back over the 6% mark. Mortgage lenders faced questions from MPs over the situation during the Treasury committee today. Bank bosses said they have not yet seen a substantial increase in the number of customers in arrears, but those taking out a new deal were facing higher payments above £200 per month on average. Some 2.4 million fixed-rate mortgages are due to end b){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
The average two-year fixed-rate homeowner mortgage rate has soared to levels last seen 15 years ago.
According to Moneyfactscompare.co.uk, the rate reached 6.66% this morning, up from 6.63% yesterday.
The last time they were higher were in August 2008.
This is also up from the last peak of 6.51% on October 20 last year, following the announcement of the new mini-Budget under then-new prime minister Liz Truss.