People wanting to fix their mortgage rate will have to pay through the nose for it, according to a leading financial website.

Despite swap-rate mortgages peaking three weeks ago, fixed-rate mortgage costs have not started to decline.

Moneyfacts has said that lenders are failing to pass on rate cuts to consumers and the hardest hit are those wanting the long-term security of a fixed-rate homeowner loan.

In a recent study the financial adviser showed that the average two and three-year fixed-rate mortgage now has an interest rate of more than seven per cent.

The Bank of England said the number of mortgage approvals fell to a record low in May of this year.

And according to the Council of Mortgage Lenders (CML), the lack of credit available to borrowers is having a direct effect on the property market.

The CML said that many people are waiting for normal market conditions to return before making a purchase.