Mortgage ticking time bomb as rates rise - but Sunak rules out support

HOMEOWNERS are facing even more mortgage pain, as data released today showed the average interest rate on a two-year fixed rate deal is now more than six per cent.

- Daniel O’Boyle and Simon English

Those higher rates will come without fresh government support, as the Prime Minister this morning said there will not be extra help for people struggling to make payments.

According to new data from Moneyfacts, the rate for a two-year fix surged from 5.98 per cent on Friday to 6.01 per cent this morning.

It is the highest rate since the aftermath of Kwasi Kwarteng’s disastrous mini-Budget last autumn, when rates skyrocketed to peak at 6.65 per cent.

Five-year rates were also up from 5.62 per cent to 5.67 per cent.

Buy-to-let rates rose even faster, with two-year rates up from 6.21 per cent to 6.3 per cent and five-year rates up from 6.17 per cent to 6.23 per cent, meaning renters and landlords will likely pay more too.