UK twoyear mortgage rates rise to 6.01, highest since Dec
Stubborn inflation makes more BoE rate rises likely
BoE expected to raise its main rate to 4.75 on Thursday
Twoyear government bond yields highest since 2008
Government plays down prospect of aid for mortgageholders

LONDON, June 19 Reuters Twoyear fixedrate borrowing costs for British homebuyers topped 6 on Monday, reaching their highest since the period after September39;s minibudget crisis and adding to strains that are weighing on the housing market.

British lenders have raised interest rates sharply in recent weeks as stubbornly high inflation has pushed up expectations among investors for where Bank of England rates will peak.

The BoE is expected to raise its borrowing costs for a 13th time in a row on Thursday as it attempts to tackle stubbornly high inflation.

Financial data company Moneyfacts said the average rate for a new twoyear fixedrate mortgage reached 6.01 on Monday, the highest since Dec. 1 and up from 5.98 on Friday. The average fiveyear fixed rate increased to 5.67 from 5.62.

Most UK homebuyers take out mortgages which have a fixed rate for two or five years, after which they pay a floating rate or refinance at a new fixed rate.

Mortgage brokers said rates ranged widely around the averages quoted by Moneyfacts, depending on borrowers39; credit risk and loan size, but were definitely on the rise.

If customers have a good credit score, there are 2year fixed rates below 6, said Elliott…