The average standard variable rate paid by UK mortgage borrowers has topped 5% for the first time in more than 13 years, piling more pressure on households.
The financial data provider Moneyfacts said the typical SVR rose to 5.06% at the start of July and is at the highest level since January 2009, when it stood at 5.14%.
The Bank of England has increased the base rate five times since December, taking it from a historic low of 0.1% to 1.25%.
SVRs are typically paid by borrowers who have come to the end of a fixed or discount-rate deal and are set at the discretion of lenders.
The average new two-year fixed rate has also gone up for a ninth consecutive month, said the data provider.
At 3.74%, this is a sharp increase on the December 2021 figure of 2.34% and the highest rate recorded since mid-2013.
Eleonor Williams of Moneyfacts said: "As might be expected following the recent base rate rises from the Bank of England, the average Standard Variable Rate (SVR) has also risen and at 5.06% is now above 5% for the first time since January 2009.
"Although the difference between this rate and the average fixed rates has reduced in recent months, for eligible borrowers about to fall onto a revert rate, the incentive to lock into a new fixed deal is still clear.
"Those switching from the average SVR to the current average two-year fixed rate might be able to make monthly savings of nearly £150. While we remain in a cost of living crisis, with pressure on many household budgets, it’s vital prospective borrowers explore their options and are not disheartened by recent rate rises."
The average overall two-year fixed rate has risen for a ninth consecutive month, and is now 1.40% above the same figure last December. It is now at its highest point in nine years.
Meanwhile, the average overall five-year fixed rate average has also risen for nine successive months and is the highest on our records since November 2014.
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Companies reporting today
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