True mortgage cost rises

The average rate of UK retail mortgages (including all fixed and variable rates and all LTVs) in April 2014 is 3.87%.

Sylvia Waycot, Editor at Moneyfacts.co.uk, said: “The average true cost of a mortgage has risen for the third month in a row.

“This may be due in part to the Government withdrawing FLS from the retail market and refocusing it towards the SME market, causing a rebalancing of rates, fees and introductory offers.

“Fixed rates are also sensitive to SWAP rates which have been rising due to speculation of a BoE base rate rise.”

Average mortgage rates increased across the fixed and variable ranges, with the exception of variable two and five-year deals which saw averages dip.

The number of fixed rate mortgage products on the market contracted, with the exception of five-year fixed, whilst the number of variable mortgages rose across two, four and five-year terms.

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