The Telegraph - Borrowers who snapped up dirt cheap pandemic deals now face £5,000-a-year mortgage shock
Homeowners who secured rock-bottom mortgage deals during the pandemic now face paying an extra £5,000 a year as rates surge again.
The average two-year fixed mortgage rate has now jumped to 5.72pc – the highest level since January, according to the analyst Moneyfacts.
Aaron Strutt, of broker Trinity Financial, told The Telegraph: “It’s a nightmare for a lot of borrowers.”
He said price gaps between major lenders are as big as one percentage point so he advised shopping around for the best deal.
Mr Strutt said banks do not have to give any notice to pull deals so he said it was key to act quickly to avoid missing out. He added: “By taking too long to make a decision, it can cost you a small fortune.”
Five-year fixed mortgage rates remain cheaper than two-year fixes, so Mr Strutt said they could become more popular with borrowers.
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