This week has seen the average 2 year fixed rate mortgage increase to 4.9% and the 5 year fixed to 5.82%, so is it time to fix that mortgage?

According to Moneyfacts, the average on a 2 year fixed rate mortgage has risen this week by 0.16% and on a 5 year fixed by 0.21%.

Not only that but the number of fixed rate mortgage deals available is on the decline, down from 937 to 887.

Michelle Slade, analyst at Moneyfacts.co.uk, said ‘The last time we saw such frantic activity was at the end of June 08, when the average two year fixed reached a staggering 7.08%.’

She added ‘In June 08, when the average rate hit its peak the margin over swaps was 0.76%. Today the margin is 2.35% and it is hard to forsee anything other than fixed rate increasing even further.’

Earlier this week we saw Lloyds owned Cheltenham & Gloucester and Halifax raise their fixed mortgage rates. This came on the back of the earlier announcement that Nationwide was raising its rates.

Perhaps it really is time to look around for the best mortgage deal before the rates rise further?