Mortgage rates have continued to rise, hitting a 14-year high on Thursday, figures show.
Average fixed rates for two and five year bonds rose to 6.65% and 6.51% respectively as UK borrowing costs remain at elevated levels amid ongoing political uncertainty in Westminster.
One analyst warned mortgages still have a “long way” to fall.
It comes as the Bank of England is expected to hike interest rates again in November to curb inflation.
Consumer prices rose 10.1% in the year to September, returning to a 40-year high as food, energy and transportation costs rose.
On Thursday, however, the bank’s deputy governor questioned whether “dramatic” rate hikes were needed amid signs that global inflation was beginning to stabilize.
“Whether official interest rates will need to rise by as much as financial markets are currently pricing in remains to be seen,” Ben Broadbent told students at Imperial College London.
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Mortgage rates have been rising for months as central banks around the world have been raising interest rates to fight inflation.
But UK mortgage rates rose particularly sharply after financial markets reacted poorly last month to the government’s mini-budget that promised billions of pounds in unfunded tax cuts.
UK lenders have suspended hundreds of mortgage products as prices for these long-term loans remain uncertain.
Researcher Moneyfacts said the number of deals fell to 2,258 in early October from 3,961 on the morning of then-Chancellor Kwasi Kwarteng’s statement.
In the meantime, however, they have recovered slightly to 3,128 – although consumers still have a fifth fewer offers to choose from than they did a month ago.
At least 100,000 monthly mortgage holders are nearing the end of their current business and facing a steep increase in monthly repayments.
Brokers have said there is still demand for mortgages, but lenders are wary of being inundated with applications as uncertainty lingers in the economy.
Bill Blain of investment firm Shard Capital said cutting mortgage rates depended on “when we can restore stability”.
“There is a lot of work to do to bring UK interest rates back down, especially when we still face a huge risk of inflation,” he added.
“The only way to counter inflation is to keep raising interest rates, so I think we’re a long way from mortgage rates starting to go down.”
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