Fixed mortgage rates have risen modestly over the past month, with the average two-year fixed rate reaching 5.8 per cent, research from Moneyfacts has found.
The Moneyfacts UK Mortgage Trends Treasury Report found the average two-year fixed rate rose from 5.76 per cent in March 2024.
A similar rise was observed in the average five-year fixed rate, which rose from 5.34 per cent in March to 5.39 per cent in April.
Both represent an increase on a yearly basis as the average two-year fixed rate stood at 5.35 per cent in April 2023 and the average five-year fixed rate was 5.05 per cent.
Moneyfacts finance expert, Rachel Springall, said: “Fixed mortgage rates have continued on an upward trajectory, but the rises to the overall average two- and five-year fixed mortgage rates were much more modest.”
Springall described this as an “encouraging” sign for borrowers concerned about rising interest rates and the short window of opportunity to secure a new deal.
“Borrowers will find rates are significantly lower compared to six months ago, when the average two- and five-year fixed rates were 0.67 per cent and 0.58 per cent higher respectively,” she added.
Moneyfacts also found that mortgage product availability “continues to thrive”, with the overall choice of residential products reaching its highest point in over 16 years in April.
Total product count across all LTVs reached 6,307, an increase on both the 6,004 that was recorded in March and the 5,146 recorded in April 2023.
Springall pointed out this was “good news” for first time buyers who may be struggling to find an affordable property.
“Those with limited deposits will find the cost to borrow at higher loan-to-values across the two- and five-year fixed rates rose month-on-month, with the average two-year fixed rates at 90 per cent and 95 per cent breaching 6 per cent,” she explained.
The shelf life for mortgage products was also examined, with the average shelf-life in days rising to 22 days.
This was a rise both on a yearly and monthly basis as the average shelf life stood at 15 days in March 2024 and at 21 days in April 2023.
tom.dunstan@ft.com
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