Mortgage rates shoot up

HOMEBUYERS face rising mortgage bills as cheap deals vanish.

The cost of a new fixed-rate mortgage deal has gone up by hundreds of pounds over the past six months. The average two-year fixed-rate deal rose from 2.21 pc last October to 2.48 pc today.

As a result, the cost of a £150,000 loan has jumped from £7,812 to £8,064 a year — a £252 increase.

Five-year fixed-rate deals have also gone up over the past six months. Interest on the average loan rose from 2.76 pc to 2.91 pc, costing an extra £132 a year, says financial data firm Moneyfacts.

Mortgage costs have been climbing since the Bank of England increased the base rate from 0.25 pc to 0.5 pc last November. Halifax hiked some fixed-rate deals by up to 0.36 pc, TSB by up to 0.25 pc, Coventry BS by as much as 0.24 pc and Skipton BS by 0.22 pc.