Average mortgage rates today stand at their highest level in six months, according to Moneyfacts.co.uk who say this is because lenders are passing rising funding costs on to their borrowers.

Swap rates - which are the inter-bank rates charged between lenders - have increased significantly in recent months. On 30 th November 2010, the two-year swap rate stood at 1.35%, whereas today it stands at 1.98%.

The average two-year fixed rate is priced at 4.49%, the highest level since August 2010. Three-year fixed rates are now 5.05%, which is the highest level since September. And five-year fixed rates are today 5.45%, the highest level since last August.

“Fixed mortgage rates continue to rise as lenders pass on the higher cost of funding to borrowers,” said Michelle Slade of Moneyfacts.co.uk

“The majority of lenders have increased rates since the start of the year, with some mortgage deals seeing rate rises of more than 0.50%.

“Borrowers who have delayed the decision to commit to a new deal will now find themselves having to pay higher monthly payments.”