The cheapest interest rate on the market rose by 109 basis points from 3.51% to 4.6% in March, influenced by the consequences of the war in the Middle East.
Moneyfacts’ analysis shows that this jump in the lowest available interest rate has added around £150 a month to the cost of a £250,000 mortgage for a borrower taking out a deal now, compared to a month ago.
That amounts to € 1,810 extra per year.
Both deals in the comparison were fixed rates for two years.
Data from Moneyfacts previously showed that the average two-year interest rate fixation for homes is now 101 basis points higher than at the outbreak of the war.
Interest rates have remained unchanged since yesterday at 5.84%, while the average five-year interest rate has fallen by 1 basis point to 5.75%.
The average tracker is 4.69%, unchanged from yesterday.
For buy-to-let borrowers, the average two-year term is now 5.44% and the average five-year term is 5.75%.
Moneyfacts personal finance analyst Caitlyn Eastell says: “It’s been just over a month since the start of the conflict in the Middle East.
“The impact on borrowers was almost immediate, as costs rose sharply and almost all average rates across LTV bands increased by a full percentage point or more.
“Even the lowest rates have taken a hit, in just a few weeks even the lowest available rates have risen from 3.51% to 4.6%.
“Since the start of the conflict, almost £1,800 per year has been added to the average two-year fixed rate – that’s over £3,500 for the full term, based on the typical £250,000 loan over 25 years.
“For the average five years, over £1,400 per year has been added, which equates to over £7,000 for the full five years.
“However, some of the withdrawals from the first few weeks of the conflict are slowly starting to trickle back, but lenders may still be cautious as the future around inflation and interest rates is uncertain.”