Mortgages: Average rate rises above 6% for five-year fixed deals

ITV News political reporter Libby Wiener has the latest

The average five-year fixed-rate homeowner mortgage has jumped above 6% for the first time since November last year, new data shows.

Across all deposit sizes, the typical rate on the market on Tuesday was 6.01%, up from an average rate of 5.97% on Monday, according to financial information website Moneyfacts.

The total number of residential mortgage products available shrunk to 4,404, from 4,396 the previous day.

The last time the typical five-year fixed-rate residential mortgage topped 6% was in November last year, when rates rose sharply following former chancellor Kwasi Kwarteng’s mini-budget.

Sunak attacked for dodging Johnson vote and skipping two PMQs
The Bank of England pushed the UK base interest rate to 5% last month, the 13th time in a row it has increased. Credit: PA

It comes as the Bank of England pushed the UK base interest rate to 5% last month, opting for a bigger hike than most economists were expecting.

It marked the 13th time in a row the central bank has pushed up rates, in efforts to quell rampant inflation across the UK.

Lib Dem MP and Treasury spokeswoman Sarah Olney urged the government to do more in response to climbing mortgage rates.

She said: “This is yet more mortgage misery for homeowners on the brink.

“Rishi Sunak asking homeowners to hold their nerve is sounding more tin-eared by the day.

“It shows this Conservative Government is just totally out of touch.

“Conservative ministers sent mortgages spiraling through all their chaos and incompetence, now they are refusing to lift a finger to help.”

Banks summoned by financial watchdog for talks over savings rates

It comes as major banks have been summoned to a meeting with the Financial Conduct Authority (FCA) to discuss concerns surrounding interest rates for savers falling behind rising mortgage prices.

The FCA expects bosses from HSBC, NatWest, Lloyds and Barclays to attend the Thursday meeting amid allegations of "blatant profiteering".

Many banks have been hiking their savings rates in recent weeks, although some mortgage rates are sitting at a significantly higher level than some rates being offered on savings.

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