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 A leading money website has claimed that fixed-rate mortgage prices are at their highest rate for ten years.
New research from Moneyfacts.co.uk suggests that the average two-year fixed rate stands at 6.75 per cent, adding more pressure to homeowners who are already tightening their belts in the current economic downturn.
In addition, customers looking to fix their mortgage for five years are also paying the price, as the average rate has increased to 6.72 per cent.
Commenting on the findings, Darren Cook, mortgage expert at Moneyfacts, said: "The curse of Friday 13th bought more pain for borrowers as swap rates reached a new high of 6.49 per cent.
"With lenders having to pay such a huge price to secure funds and a lag time of a few weeks before this cost is passed on to mortgage customers, the situation is likely to get worse before it gets better.
"Many borrowers prefer fixed rate deals, particularly in today's economic climate as they struggle to keep outgoings under control. However, many are likely to find this increased cost too much to bear."
Mr Cook added that if the economic slowdown persists, a situation may arise where a higher proportion of borrowers are on their lender's standard variable rate than on an actual mortgage deal.
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