Fixed mortgage rates ‘hit 10-year high’

The interest level offered by the average fixed-rate mortgage deal in the UK has hit a ten-year high, according to the latest figures.

Moneyfacts reports that the typical interest level on a two-year fix is currently around 6.75 per cent, while homeowners looking to fix for five years can expect to pay around 6.72 per cent in interest on their loans.

Borrowers who opt for a fixed-rate arrangement tend to want a degree of debt management security and to avoid changes in borrowing costs, but the comparison firm behind the recent research has suggested that many people will soon be unable to afford these kinds of deals.

“Many borrowers prefer fixed rate deals, particularly in today’s economic climate as they struggle to keep outgoings under control,” a statement from Moneyfacts explained.

“However, many are likely to find this increased cost too much to bear.”

According to Lloyds TSB, more and more Britons are aiming to cut cost when moving to a new home by packing and transporting their own belongings.

By Giles Stevenson