Mortgages soar in just 12 months with average of one rate almost doubling

There has been 13 consecutive rises since December 2021 (Image: GETTY) Families coming off their fixed mortgage deals face huge repayments this year as the average interest rates for some are almost double what they were last year, new research shows.  The average 85 percent LTV five-year fixed mortgage rate is now 6.15 percent, up from 3.63 percent a year ago, and the average two-year fixed mortgage rate is now 6.61 percent, up from 3.66 percent last year. Rightmove can provide average monthly mortgage payments based on the latest available asking price and mortgage rate data. For example, the average monthly mortgage payment on a first-time buyer type property which is currently £225,552, for someone taking out an average five-year fixed, 85 percent LTV mortgage, is now £1,253 per month if repaying over 25 years.  Matt Smith, mortgage expert at Rightmove said: ‘Average rates across five-year and two-year fixed products have seen their first weekly drop since mid-April, as the more positive economic news in recent weeks begins to filter through to the mortgage market and lenders tentatively begin to reduce rates. The base rate now sits at five percent (Image: EXPRESS) ‘As previously seen, lenders are likely to be waiting for this week’s Base Rate announcement before any further action so they can act with a little more certainty – but without any market surprises, we expect rates to reduce further in the coming weeks and potentially accelerate depending on how positive the signs are.’  Further findings show the average five -year fixed mortgage rate is now 6.08 percent, up from 3.69 percent year ago. The average 60 percent LTV five-year fixed mortgage rate is now 5.82 percent, up from 3.44 percent a year ago. The Bank of England Bank Rate stands at five percent, having risen from 4.5 percent last month. Many lenders have raised their own rates, both in response to this and in anticipation of a further increase when the Bank of England meets this Thursday. Experts have suggested the base rate will rise further to 5.25 percent, despite inflation falling to 7.9 percent in June. The Bank of England are expected to keep raising interest rates in a bid to lower inflation and hit its two percent target by the end of the year. There has been 13 consecutive rises since December 2021, when it stood at just 0.1 percent. It puts the Bank rate at its highest level since 2008, applying further pressure on the cost of borrowing.