The price of average fixed-rate mortgages rose this week due to renewed turmoil in the Middle East, according to the latest Moneyfacts rate watch.

The average two-year fixed rate rose from 5.46% last week to 5.5% on 17 July, whereas the typical average five-year fix rose from 5.48% to 5.52%.

Long-term fixed rates saw the largest average increases this week, with 10-year fixes to 50% LTV rising by a typical 35bps to 5.48%.

Meanwhile 10-year fixes to 100% LTV rose by 25bps to 6.7%2, and five-year fixes to 50% LTV were up by 17bps to an average of 5.28%.

Moneyfacts personal finance analyst Caitlyn Eastell said: “Average mortgage rates have climbed week-on-week for the first time since Easter. While a 4bps increase may seem ‘small’, it’s a reminder of how quickly markets can shift. In just a week, a typical borrower with a £250,000 loan over 25 years could add around £70 extra a year to their mortgage repayments.

“The latest disruption in the Middle East has driven up expectations that inflation and interest rates will remain higher for longer, leaving lenders with no choice but to reprice products. Just at the start of the month mortgage rates were falling at the fastest pace in almost two years, so the sudden switch-up may be incredibly frustrating for borrowers.”

The rise was driven by 15 lenders increasing rates. These included NatWest, which increased its fixed rates by as much as 27bps, while Barclays increased by 7bps.

Increases as high as 35bps came from lenders such as Furness Building Society, Leek Building Society and Nationwide Building Society.

Fixed-rate increases (bps)

• April Mortgages – Fixed rates increased by 25bps.
• Bank of Ireland Intermediaries – Fixed rates increased by up to 33bps.
• Bank of Ireland UK – Fixed rates increased by up to 33bps.
• Barclays – Fixed rates increased by up to 7bps.
• Coventry Building Society – Fixed rates increased by 20bps.
• Furness Building Society – Fixed rates increased by up to 35bps.
• Gen H – Fixed rates increased by up to 25bps and later by up to 19bps.
• Leek Building Society – Fixed rates increased by up to 35bps.
• Melton Building Society – Fixed rates increased by up to 20bps.
• Nationwide Building Society – Fixed rates increased by up to 35bps.
• NatWest – Fixed rates increased by up to 27bps.
• NatWest Intermediary Solutions – Fixed rates increased by up to 27bps.
• Royal Bank of Scotland – Fixed rates increased by up to 27bps.
• Vernon Building Society – Fixed rates increased by up to 30bps.
• Virgin Money – Fixed rates increased by up to 35bps.

Fixed-rate reductions

• Nottingham Building Society – Fixed rates reduced by up to 14bps.
• Progressive Building Society – Fixed rates reduced by up to 40bps.
• The Co-operative Bank for Intermediaries – Fixed rates reduced by up to 25bps.