The mortgage market is now seeing higher interest rates and fewer products, according to analysis by Defaqto, the financial information and technology experts.

Defaqto says the average two-year fix at 75 per cent LTV is now 2.33 per cent compared to 2 per cent on 6 April, six months ago.

This means the average home bought with a mortgage now costs £585 more in interest over two years than it did at the start of the summer.

According to Defaqto, the best mortgage product is now a two-year fixed rate 75 per cent LTV at 1.60 per cent from Monmouthshire Building Society. This compares to 1.19 per cent six months ago.

There is only one fixed rate product widely available for house purchase at 90 per cent LTV. It is a five-year fix at 3.99 per cent from Metro Bank and compares to a rate of 2.19 per cent and 16 products available in April.

First-time buyers are the worst hit as mortgages are more expensive and there are fewer products available to them, Defaqto adds.

The current best buys are a Halifax two-year fixed rate 60 per cent LTV at 1.28 per cent and HSBC five-year fixed rate 60 per cent LTV at 1.44 per cent. Defaqto points out that not many FTBs have a 40 per cent deposit to hand, however.

The best buys for FTBs at higher LTVs are Nationwide with a two-year fix at 90 per cent LTV and 3.49 per cent rate, or at 85 per cent LTV Natwest has a two-year fix at 3.10 per cent.

Defaqto banking expert Katie Brain says: “Although the Bank of England base rate hasn’t moved since March and there is talk of ‘negative interest’ rates coming in, this is not the case for mortgages.

“Unfortunately, there is so much demand right now that lenders do not need to offer the incredibly low rates we saw earlier in the year. This could be the beginning of an upward trend in mortgage rates, as we are seeing rates creep up across the board.”