Twenty-one lenders have increased mortgage rates since mid-September, according to Moneyfacts.
Moneyfacts finance expert Charlotte Nelson says two-year swap rates rose from 0.54 per cent to 0.82 per cent in just one month.
She adds: “In the past few years, the link between mortgage rates and swap rates appeared to be broken, not only due to the volatility of the rates but also the fierce competition among lenders in the mortgage market.
“However, the substantial increase in swap rate seen in the past few weeks has quickly changed this, with 21 providers upping their rates since 12 September.”
The average two-year fixed rate mortgage price is also creeping up, the firm adds.
The firm says that, while month-on-month figures show that while average two-year fix prices appear to be falling, these have actually risen 0.04 per cent since October.
Nelson adds: “Providers are now starting to factor swap rate rises into their pricing, causing the average two-year fixed rate to start creeping up, and this new trend is showing no signs of abating yet.”
Sourced from: Mortgage Strategy