New two-year fixed mortgage rates close to 6% in the fallout of the mini budget

Today’s numbers showed that mortgage rates have risen nearly a full percentage point in the 10 days since the mini budget.

Realtors have warned that homeowners face a chaotic second week as lenders try to control market expectations of higher interest rates.

The typical cost of a two-year fixed-rate mortgage rose to 5.75 per cent, compared with 4.74 per cent on September 23, the day of Chancellor Kwasi Quarting’s announcement.

That’s more than double the 2.34 percent average rate quoted last December, according to analysts at Moneyfacts.

Meanwhile, the rate of the five-year fixed-rate mortgage deal rose to 5.48 percent today from an average of 4.75 percent on the day of the mini-balance.

You can check which fixed rate mortgage deals can be offered to you and how much they will cost based on the size of your mortgage, the value of the house and how long you want to fix it. With Money’s best mortgage rate calculator, powered by L&C.

Panic gripped the property market last week amid fears that the Bank of England will raise the base interest rate to 6 per cent next year.

Lenders pulled nearly 2,000 mortgage products last week as they scrambled to reprice their deals to reflect higher interest rates in the future.

Some, including Virgin Money and HSBC, cautiously returned to the market last weekend – but at inflated prices.

NatWest announced Sunday that it increased its fixed-price deals by as much as 1.78 percentage points.

According to Bank of England data, more than two million homeowners will be refinanced with term loans between now and the end of 2024.

The chancellor announced yesterday that he was making a drastic change to his most controversial policy, cutting the income tax rate by 45p.

Brokers have reportedly sent inquiries from clients asking if they can withdraw mortgage applications submitted within the past week.

Experts said borrowers were wrongly hoping the advisor’s shift would prompt lenders to lower their rates over the next few weeks.

Dominic Lipnicki of Your Mortgage Solutions said: “The chancellor’s decision yesterday was a political one and will have little impact on the city. People are still very stressed and panicking as they are beginning to realize they are facing a huge shock to their mortgage bills which is inevitable.” At this stage.

Dominique Agasse, CEO of Winkworth Estate Agency, said the price hike is likely to halt property sales. “This is what happens every time there is an increase in mortgage rates,” he told the Financial Times.

He added that the slowdown will be most severe in areas of the market where sales peaked during the pandemic, such as large country homes.

On the first day of last month, 3,890 mortgage products were sold. That dropped to about 2,000, and yesterday the number was 2,262.

Rachel Springol, financial expert at Moneyfacts, said: “Borrowers may be anxious to see a further decline in mortgage availability, but many lenders have been very vocal that their withdrawals are taking place on a temporary basis amid uncertainty about interest rates.

Seeking advice from an independent broker would be wise, especially for those borrowers who have not yet begun the mortgage process and are being deterred by the level of selection and much higher mortgage rates than they expected.

“The next few weeks will be crucial to seeing where lenders go from here, but we’ve already seen some new firm deals arrive since last week.”