Mortgage rates are increasing at their fastest pace in a decade as banks try to squeeze profits from home owners and first-time buyers while a mini housing boom is under way.
Home loans are getting more expensive by the day, with September having the biggest monthly increase in interest rates since 2009. The average two-year fixed-rate deal, which cost less than 2 per cent in June, is now 2.24 per cent, adding £330 a year to the typical outstanding mortgage loan of £132,128.
The average five-year fixed-rate mortgage is now 2.62 per cent, up from a low of 2.25 per cent in July, an increase of more than £480 a year, according to the financial data firm Moneyfacts.
There has been a surge in demand
