Average mortgage rates across the UK climbed successively every day this week, despite the Bank of England’s move to cut interest earlier in the month.
According to comparison site Moneyfacts, interest on the typical five-year fixed rate mortgage sat at 5.4955% on Friday, against 5.4205% a week ago.
Savings rates also fell over the course of the week, from an average of 3.0082% last Friday to 2.9818%.
The final sub-4% two-year fixed mortgages were pulled from the market on Thursday also, as lenders reacted to an increase in swap rates.
Despite the Bank of England’s second 25 basis point interest rate cut earlier in November, expectations have shifted towards a slower pace of reductions ahead.
“The market outlook for rates has edged toward a ‘higher for longer’ expectation,” L&C Mortgages broker David Hollingworth commented.
“The Bank of England base rate is still expected to fall over time, but markets are questioning if the pace will be as rapid.”