April saw a 0.17% month-on-month increase in the two-year fixed rate average for all loan-to-values (ltv) which has now risen for a seventh consecutive month. At 3.03% this is the highest on Moneyfacts’ records since March 2015 (3.06%) and has risen by 0.69% since December 2021.

At 3.17%, the overall five-year fixed rate increased for a seventh consecutive month, rising by 0.16% since last month and now the highest recorded since May 2016 (3.17%), having gone up by 0.53% since December 2021.

The average two- and five-year fixed rates at 95% LTV have also risen month-on-month to 3.35% and 3.47% respectively. However, not only are these average rates still lower than a year ago, but product availability in this sector has also continued to improve, rising by a further two deals this month to 369 – the most on offer since pre-pandemic in March 2020 (391).

Eleanor Williams, finance expert at Moneyfacts, said: “The mortgage sector has demonstrated great resilience during unprecedented times, buoyed by the level of demand for the limited supply of housing stock available and the great ‘race for space’ as many people re-evaluated their property needs.

“The sector could continue to be fuelled by a shift in focus as remortgage borrowers, spooked by Bank of England rate rises, hurry to secure some financial stability and rush to lock into a fixed deal to protect themselves from further rate increases. This move may particularly be true for those who, by virtue of house price growth, could take advantage of increased equity in their home to potentially secure a lower rate.”

She added: “First-time buyers could understandably be feeling disheartened by the combination of rising house prices, mortgage rates surging and increases in their cost of living impacting on affordability.”