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The equivalent five-year fixed rate has been tweaked upwards to 5.67percent from 5.62percent. Further evidence has emerged that increased mortgage costs are causing financial distress for growing numbers of borrowers. Legal and General’s mortgage platform Ignite, used by brokers, reported a 53percent increase in searches for interest-only mortgages in June, compared to the previous month. Its new rates are likely to be priced higher as the mutual responds to changing market conditions.

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