Homeloan prices have more than tripled since the Brexit referendum on this day 10 years ago, according to research from L&C Mortgages.

L&C said the significant shift in interest rates in the intervening 10 years underlines the significant change that mortgage borrowers have faced.

Tracking the lowest rates from the top ten UK lenders shows the average two-year remortgage rates for those with a 40% deposit have trebled since the referendum.

On this day in 2016 the average rate was just 1.52% but has now lifted to 4.61%, L&C found.

The average five-year rates are now 4.66%, having more than doubled from 2.2% in 2016.

A £200,000 25-year repayment mortgage would now cost £322 more per month, a rise of almost £3,870 more each year.

Homebuyers have seen similar hikes. The average two-year purchase rate for those with a 10% deposit was just 2.48% in June 2016 but now clocks in at 4.93%.  Five-year rates have lifted to 4.84% from 3.29% in 10 years.

Mortgage rates have risen significantly in recent years with a host of factors contributing to the shift.

Borrowers have also experienced the effects of the pandemic, the consequent rise in inflation and periods of market volatility, which increased funding costs for lenders, such as the mini budget and conflict in Ukraine and the Middle East.

L&C Mortgages associate director David Hollingworth said: “The rate environment has shifted dramatically since the referendum and borrowers have had to adapt to a radical change in mortgage costs.  Base rate sits at 3.75% today compared to just 0.50% at the time of the vote to leave the EU and then dipping further to 0.25% in the following months.

“A lot has happened in the mortgage market over the last ten years but a generation of borrowers that was used to rock bottom interest rates have had to recalibrate.  Ultra-low rates became the norm over a prolonged period, so the rapid uplift has made life difficult for homeowners.

“First time buyers and homemovers are now navigating a market where rates of close to 5% or more have become typical, which may not dull the desire to buy but does transform how people think about their mortgage choices.

“What does echo 2016 is that political uncertainty persists.  The vote to leave resulted in a change of Prime Minister and borrowers today are again wondering what another change at the top will mean for them, following Keir Starmer’s resignation.”