Two and three-year fixed-rate mortgages are getting more expensive, with rates rising for the first time in a year.
The average two-year rate hit 3.69% in August, up from 3.63% in July 2013, the first rise since June 2012.
Three-year rates rose to an average of 4.06% in August, up from 4.02% in July, the first rise since July 2012, according to new figures from the Mortgage Advice Bureau (MAB).
The new figures follow recent warnings that suggest that mortgage rates have finally bottomed out, and can only rise from today's lows.
But rates are still much cheaper than they were a year ago. In August 2012, the average two-year fix cost 4.65% and the average three-year fix cost 5.02%.
And five-year fixed rates continue to get cheaper, down from 3.86% in July to 3.83% in August, a six-year low. The average tracker rate also dropped, from 3.28% to 3.14%.
The number of people taking out variable rate mortgages doubled in August, from 9.50% in July to 20.80%, as consumers took heed of Bank of England governor Mark Carney's forward guidance suggesting that base rates won't increase for at least another three years.
This has reassured borrowers that it is safe to take a cheaper variable rate mortgage, MAB says.
Brian Murphy, head of lending at MAB, said: “With five-year fixed rates falling by 0.05% and two-year fixed rates up by 0.06%, there are plenty of reason to consider locking down for longer.
"Analysts may question whether interest rates can remain on hold until 2016 if the economy builds on recent progress and continues to emerge from the gloom. But the house buying public are clearly open to reassurance from the Bank, with more people willing to trade in the security of fixes for the benefit of lower rates."
MAB's National Mortgage Index takes data from more than 500 brokers and 800 estate agents. It also showed that lenders have launched 781 new products, boosting competition, with the total product range up 350% in four years.
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