A typical two-year fixed mortgage deal now has an interest rate of more than 6.0 per cent for the first time since December according to independent data service Moneyfacts.

Lenders have been withdrawing and re-pricing deals frequently in recent weeks, meaning new landlords or those seeking to re-mortgage face significantly higher costs. 

Yesterday the average rate for a two-year fixed-rate mortgage stood at 6.01 per cent: although the peak seen after Liz Truss’ disastrous mini-budget last October was 6.65 per cent, that fell below 6.0 per cent just before Christmas and then dropped further in the New Year. 

However, rates have climbed sharply in recent weeks and a typical five-year fixed rate is now at 5.67 per cent.

Buy to let rates grew even faster yesterday, with two-year rates up from 6.21 to 6.3 per cent and five-year rates up from 6.17 to 6.23 per cent.

Meanwhile a data platform – Moneyhub Decisioning – says its research shows that a quarter of homeowners with a mortgage said that a further interest rate rise would mean they won’t be able to afford their mortgage payments. 

In addition, a third of homeowners with a mortgage said they were concerned that they will not be able to afford their mortgage when they re-mortgage due to rising rates. 

It’s estimated that 1.4m people in the UK are set to re-mortgage in 2023 alone and with 1.5m estimated to be on standard variable rates and a further 85,000 with trackers, there are concerns of growing debt if rates rise further.

This research comes after numerous predictions the Bank of England’s Monetary Policy Committee is set to raise the base rate again on Thursday this week.