Best mortgage rates 2017: Borrowers urged to remortgage as deals go and prices rise
GETTY Homeowners have been urged to remortgage
The average two-year fixed rate home loan for remortgage customers is 2.58 per cent, from 2.44 per cent six months ago, and higher than a year ago, according to analysis by Moneyfacts.co.uk.
The difference adds £169 a year to the cost of a £200,000 mortgage, as lenders slowly raise rates.
Experts said ahead of an expected interest rate rise costs could keep edging higher.
The Bank of England has warned households that the base rate is set to rise in 2018 - earlier than many expect.
But amid rising inflation and a strong economy policymakers could hike rates sooner, which could lead to a dramatic jump in borrowing costs.
Mortgage advice from Martin Lewis Mon, December 19, 2016 Martin Lewis warns that the biggest single personal financial risk in 2017 is that mortgage rates will rise rapidly. Here's the Money Saving Expert's top mortgage tips. Play slideshow Getty 1 of 10 Mortgage advice from the Money Saving Expert Martin Lewis
Homeowners have now been urged to lock in cheap deals, especially borrowers who are sitting on lenders' Standard Variable Rates (SVR), which are typically far more expensive than fixed rates.
Charlotte Nelson, finance expert at moneyfacts.co.uk, said: "The fact that some rates are starting to creep up for re-mortgagors is unwelcome news for those borrowers who have yet to capitalise on the heightened competition that has caused low rates to appear in the market.
“While the lowest rates in the market remain put for the time being, lenders have started to tinker with their products that are not in the spotlight.
“Due to all the talk surrounding base rate, borrowers have started to consider their options in case the base rate were indeed to increase."