According to the financial information website, mortgage and savings rates have been volatile in recent months despite the Bank of England's benchmark interest rates remaining unchanged.
The analysis was published as the Bank of England's benchmark interest rate remained at 5.25% on Thursday, despite inflation returning to the 2% target last month for the first time since July 2021.
The market's average two-year fixed mortgage rate rose slightly from 5.91% in early May to 5.93% in early June, and down from 6.04% in early December 2023, according to Moneyfactscompare.co.uk.
The market's average five-year fixed-rate mortgage rose slightly from 5.48% to 5.50% from early May to early June, down from 5.65% in early December 2023.
The average standard variable interest rate (SVR) that borrowers receive at the end of the first transaction was 8.18%, slightly lower than 8.19% in December 2023, unchanged from the previous month.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: She said: “Rising mortgage costs may cause deep concern for borrowers who are exiting fixed rate contracts and need to refinance.
“Affordability is a pressing need for both homeowners looking to refinance and new buyers, so those struggling to find ways to afford their mortgage repayments will no doubt be desperate to see interest rates fall.
Homeowners who are unsure whether to secure a new fixed-rate mortgage may still find it cheaper than taking out a standard variable interest rate of over 8%.
“These rates have almost doubled since the Bank of England began raising interest rates in December 2021.”
According to calculations by Moneyfactscompare.co.uk, mortgage holders with the current average SVR could end up paying £287 more per month compared to an average two-year fixed rate mortgage.
The calculations were based on a £200,000 mortgage borrowed over 25 years (on a repayment basis). SVR repayments are £1,567 per month, while for a two-year fixed rate it is £1,280 per month.
Ms Springall said volatility in swap rates, which lenders use to price mortgages, was causing lenders to increase fixed mortgage rates and pull back on some deals priced below 5%.
She continued: “As a result, average two-year fixed rates are approaching where they were six months ago, undoing the positive rate-cutting momentum seen in the first quarter of 2024.
“The average five-year fixed rate has remained above 5% since June 2023, having fallen above or below 6% over the past six months.
“Based on current average interest rates, it is cheaper to lock in a five-year fixed mortgage than a two-year contract. This has been the case since October 2022.
“First-time buyers who are struggling to get a foot on the property ladder and don’t have a ‘bank of mum and dad’ to fall back on may feel like getting a mortgage is a long way off right now.”
Around 1.6 million fixed-rate mortgages are due to end at some point in 2024 or have already ended, according to the UK Finance trade association.
The total value of delinquent mortgage balances has reached its highest level since 2014, according to the latest Bank of England figures.
According to statistics from mortgage lenders and servicers, the outstanding balance of delinquent mortgages in the first quarter of 2024 hit £21.3 billion, up 4.2% on the previous quarter.
In another sign of the affordability crisis, the latest UK financial figures show that around one in five new first-time buyers entered into a mortgage contract of over 35 years in the first quarter of this year.
According to UK Finance, around 21% of people taking their first step onto the property ladder have had a home loan for over 35 years.
Extending the term of a mortgage is one way to make monthly payments more affordable, although borrowers may end up paying more in interest over the long term.
Looking at the savings market, the average simple access rate at the start of June was 3.12%, up slightly from 3.11% at the start of May but down from 3.18% at the start of December, according to figures from Moneyfactscompare.co.uk. .
The average easy access Isa rate was 3.31%, the same as at the start of December but down slightly at 3.33% at the start of May.
Ms Springall added: “Savers looking for flexible funds to park their hard-earned cash can take comfort in the fact that interest rates have not fallen too much over the past six months.
“The top interest rates table continues to be dominated by challenger banks and building societies, but with the average interest rate on easily accessible accounts being around 3%, there will be many savers receiving poor returns.”
She said: “It would be prudent for consumers to review their rates if they have not done so in the last six to 12 months. Loyalty doesn’t always pay off.”
David Murray, financial planning expert at abrdn, said: “No rate cut is good news for savers, but homeowners and first home buyers will see no change or even a rise in mortgage rates. “This will provide a lot of heartache to those who had pinned their hopes on a June decline.”
Nathan Emerson, CEO of property expert body Propertymark, said: “Propertymark hopes to lower interest rates when circumstances allow and this translates into competitive mortgage deals for lenders at the first opportunity.”
Bank of England Governor Andrew Bailey said policymakers “must be confident that inflation will remain low, which is why we have decided to keep interest rates current at 5.25%.”
David Hollingworth, associate director at L&C Mortgages, said: “Mortgage rates are becoming more stable and, although they have continued to rise and fall as lenders adjust, they remain well below the peaks of last summer when rates soared.
“People hoping to see a sharp drop in mortgage rates may have to wait.”
Lucian Cook, head of housing research at property firm Savills, said: “The first interest rate cut will be critical to boosting consumer confidence. Even though the headline costs of fixed-rate mortgages won't change immediately, it will make it easier for borrowers to meet banks' affordability tests. This is more closely related to the interest rate offered by the bank at the close of the transaction.
“As a result, this is likely to allow the market to gradually become less reliant on cash- and asset-rich buyers, allowing those who have put off their plans to get on the housing ladder over the past two years to return to the market.”