Fixed rate mortgages are still rising despite swap rates continuing to fall during the past month according to moneyfacts.co.uk.

Currently the average two year fixed rate mortgage stands at 5.18 per cent, which means it has risen by almost half a per cent since the beginning of June when it was 4.67 per cent.

This rise means the margin between the average two year fixed rate mortgages and swap rates now exceeds a full three per cent with the current rate standing at 3.15 per cent.

Whereas fixed rate mortgages have risen over this period, two year swap rates have fallen from 2.51 per cent on June 11 to just 2.04 per cent today.

Louis Kaszczak, head of moneyfacts.co.uk said: “Fixed rate mortgages are continuing to be in high demand as any future bank base rate changes should only be an upward movement.

“The closer we get to a position where sentiment is stronger that base rate will be going up, the likelihood is that fixed rate deals will follow suit and become even more expensive.

“While the average rates are rising quickly, the good news is that there are still currently 42 two year fixed rate deals under four per cent”, she adds, “but customers might need to act fast before these better deals get sold out.”

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