Mortgage rates have jumped to levels last seen in January as lenders adjust to the prospect of interest rates staying higher for longer.
A swathe of mortgage providers either pulled completely or bumped up the prices of fixed-rate deals starting today, according to the latest data from Moneyfacts.
The researcher said an average two-year fixed deal now costs 5.72%, the most since 9 January, while a five-year fix is now priced on average at 5.41%, again the highest since mid-January.
Around 640,000 fixed-rate mortgages are estimated to be up for renewal in the second half of this year, according to the BBC, many of which would have been taken out during the pandemic when interest rates were close to zero.
Economists had expected the Bank of England to be cutting interest rates soon but the latest UK inflation figures showed that the annual rate is still running at 8.7% in spite of a sharp fall in energy prices, which will prompt the BoE to keep hiking for longer to curb prices.
Meanwhile, new figures have shown a surge in demand for ultra-long-term mortgages, with housing loans with a 35-year payback period seeing demand rocket.
Lloyds Banking is the UK's largest mortgage lender.