Homebuyers only have days to lock in mortgage deals – otherwise the rates go up – The Telegraph

The average five-year fix has hit the highest rate in eight years
Homebuyers have just 17 days to secure the best mortgage deals before they are pulled from the market, as rates jump to the highest level in eight years.
The time to sign up to a loan has hit a record low, according to analyst Moneyfacts, after high-street lenders pulled fixed-rate deals within hours of the Bank of England raising interest rates last week.
The average five-year fixed mortgage rate has jumped above 4pc for the first time since 2014, when the property market was still recovering in the wake of the financial crisis.
A typical borrower must now pay a rate of 4.08pc for a five-year fix, the highest since October 2014 when mortgage costs were gradually falling after the global crash in 2008.
The average rate has climbed from 3.89pc in July, adding hundreds of pounds in interest payments for borrowers each year. An average borrower with a £250,000 mortgage would have paid £1,304 a month had they locked into a deal last month, but this has now risen to £1,331.
Meanwhile the average two-year fixed rate has risen from 3.74pc to 3.95pc in the space of a month, and has climbed to the highest since 2013.
The average standard variable rate, which borrowers automatically revert to once their fixed-rate deal ends, has risen to a record high of 5.17pc. Homeowners who fail to lock into a new mortgage deal will pay thousands of pounds more in interest each year by staying on their lender’s variable rate.
Last week the Financial Conduct Authority, the City watchdog, warned the number of borrowers failing to switch their mortgage deal and save money had “declined significantly” since 2016.
The regulator estimated 370,000 borrowers could save an average of £1,240 a year by switching to a two-year fixed rate with their existing lender.
Banks and building societies have pulled almost 1,000 deals since the Bank began increasing interest rates in December last year, with 4,407 mortgages available at the beginning of August compared with 5,315 at the end of last year.
Eleanor Williams of Moneyfacts said: “This reflects the speed at which lenders are pulling their deals and increasing prices, but also means those looking for a new mortgage have the shortest length of time we have ever recorded to try to secure their deal of choice.”
The Bank Rate rose from 1.25pc to 1.75pc last week – the biggest increase in 27 years. Repayments on mortgages have risen twice as fast as in the run-up to the financial crisis, prompting economists to warn house price falls are imminent.
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