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• Swaps are used by mortgage lenders to price their fixed-rate deals for borrowers.

On the back of nine interest rate rises in 2022, the cost of mortgages also increased. Interest paid on new borrowing rose by 26 basis points to 3.35percent, while rates on existing mortgages increased by 9 basis points to 2.38percent. The influential bank rate, which affects both borrowers and savers, currently stands at 3.5percent having risen nine times since December 2021. There are currently more than 3,600 mortgage deals available, according to Moneyfacts – this compares to the 2.258 on the market in October 2022.

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