Twelve months ago, the average five-year mortgage rate stood at 3.89%, but as of this morning it's 6.01%, according to Moneyfacts data.
It's the first time rates have hit these heights since November last year, and is unwelcome news to the estimated 700,000 who still need to remortgage this year.
Here, Which? looks at why five-year rates have shot up, and delves into what first-time buyers and homeowners can do to find the best possible mortgage deal.
What will higher rates mean for you?
Rates have climbed continually almost each day for the past five weeks.
The rapid increase is piling more pressure on homeowners who still need to remortgage this year, or those who are trying to get on the housing ladder.
Fixing at a rate of 6.01% on a £200,000 loan paid back over a 25-year period will cost you £1,290 a month. In contrast, paying back the same amount on last July's average rate (3.89%) would have cost you £1,044 a month.
Why are mortgage rates still increasing?
Interest rates are highly dependent on the Bank of England base rate, which has been hiked 13 times in a row since the end of 2021.
The Bank has continually increased the rate (currently 5%) in a bid to calm inflation, which stands at 8.7%. The target is 2%.
Mortgage providers have significantly heightened their rates as a result. Experts believe further base rate hikes are on the way this year, so mortgage costs are also expected to continue climbing.
Find out more:Five-year fixes vs two-year fixes
The majority of borrowers either opt for a two-year or fix-year fix when locking in a mortgage rate.
Should rates be lower in two years' time, they will then be able to remortgage onto a cheaper deal - but there is no guarantee this will happen as the past year has proven how volatile interest rates can be.
The average rate for a two-year fix surpassed 6% a fortnight ago, and now stands at 6.47%.
The graph below shows how rates have dramatically changed over the past two years, according to Moneyfacts data.
The lowest rates on five-year fixes
While the average rate on all deposit sizes has hit a grim milestone, those who search for the best deal can still find cheaper rates.
The table shows the cheapest deals available to first-time buyers and remortgagers.
What to do if you need to remortgage
With 700,000 coming off fixed deals in the second half of this year, and a further 1.6 million in 2024, remortgaging is a hot topic.
In such a high interest environment it pays to be aware of the best steps to take when you need to refinance.
Find out when your current deal ends: Work out your current loan-to-value (LTV): Consider overpaying on your existing deal:Get a quote from your current lender: Research deals from other lenders and take independent advice: Don't fall onto your lender's standard variable rate (SVR):Decide on a mortgage term (e.g. two-year or five-year): Keep an eye out for any additional up-front fees:source https://www.which.co.uk/news/article/average-five-year-mortgage-rate-rises-above-6-what-can-borrowers-do-now-awzNj4D1GNlb