There is no six appeal – Average mortgages rates have risen to nearly six per cent for a two year deal as lenders try and guard themselves against rising costs.
There are an estimated 2.6 million people whose fixed rates deals come to an end by the end of next year and will be paying thousand more for their homes.
Experts predict the Bank of England will continue to put up interest rates, and the cost of living is still hurting.
The average two-year fixed deal is now 5.86 per cent – up 5.33 per cent just four weeks ago.
The rate of a five year deal averages out at 5.51 per cent – up from 5.03 per cent a month ago.
Only a third of borrowers on cheap fixed deals have seen them end so far, meaning the rest face leaping repayments.
Moneyfacts’ figures show that lenders are continuing to pull deals, a trend we reported on last week.
The Bank of England’s base rate is now 4.5 per cent, but many believe it will be raised by a whole percentage point by the end of the year – to 5.5 per cent.
And this will create even more pain.
The Financial Conduct Authority said that about 116,000 borrowers will come off fixed rate deals this month – and they will all be searching for the best deal.
In a further blow, Santander announced plans to shelve all new residential and buy-to-let fixed and tracker deals.
A spokesman said: “We continually review our products in light of changing market conditions.
“As we prepare for a relaunch of a full range of mortgage products from Wednesday morning, we will not be accepting new applications via intermediary and online channels temporarily from this evening.
“Our product transfer range remains fully available and customers who have already applied will not be impacted.”
Mike Bradley, a senior broker at Home Owners Advice, said: “It is very tough out there for home owners and those looking to buy.
“Rates are continuing to rise and the Bank is predicted to continue to put rates up as it battles inflation. It is the only lever it has so it will say it has little choice.
“If inflation does come down significantly we could see a pause in rate rises and that might give the market time to settle.
“In the meantime brokers are working hard to find the best deals for clients.”