Average five-year fixed mortgage rates now exceed 6%.

In an effort to reduce inflation, the Bank of England increased interest rates last month to a 15-year high of 5%.

Recent rate increases and transaction cancellations by mortgage lenders have increased costs for homeowners.

According to the BBC, homeowners are being encouraged to "hold their nerve" over rate increases by Prime Minister Rishi Sunak.

Based on the financial information provider Moneyfacts, the average rate for a five-year fixed mortgage was 6.01% on Tuesday. Currently, the typical two-year fixed rate is 6.47%.

When interest rates spiked in the wake of then-Chancellor Kwasi Kwarteng's mini-budget in November of last year, those rates last exceeded 6%.

These rates were lower a year ago, nearer to 3%.

Since December 2021, there have been 13 rate increases by the Bank of England. However, inflation—a measure of how quickly prices are rising—remaining stubbornly high at 8.7% in May.

The PM has supported the BoE's interest rate increases and promised to cut inflation in half by the end of the year.

Renters may see higher payments as a result of the recent increases in mortgage rates as landlords attempt to recuperate growing expenses. According to the National Residential Landlords Association, there could be fewer rental homes available as a result of struggling landlords selling their properties.

Banks and building societies will nevertheless give additional flexibility on repayment terms in an effort to aid mortgage holders. The ability for borrowers to temporarily alter their mortgage conditions and then revert to their original agreement within six months will allow some borrowers to temporarily reduce their mortgage payments by only paying interest.

Mortgage costs and rising interest rates slowed the UK's economic expansion in April, but Chancellor Jeremy Hunt insisted that raising interest rates is the only option available to combat price increases.

(Sources: bbc.co.uk, moneyfacts.co.uk)