Average mortgage rates on two and five-year fixed rate deals increased by just 0.02 per cent on a monthly basis, the smallest monthly rise this year, research from Moneyfacts has found.
Moneyfacts' latest UK mortgage trends found the average two-year fixed rate had increased from 5.91 per cent to 5.93 per cent from May to June.
A similar trend was observed for five-year fixed rate which rose from 5.48 per cent to 5.50 per cent over the same period.
Moneyfacts finance expert, Rachel Springall, said these rises may lead to borrowers feeling “disheartened” as it represents another consecutive month of increases.
“Lenders spent the first few weeks of May repricing, in reaction to a volatile swap rate market, but the latter end of the month was more subdued, around the time the government announced there would be a general election in July,” she added.
Moneyfacts also found the average shelf-life of mortgage products fell from 28 days in May to 15 days in June.
This also represents a fall on an annual basis as the average shelf-life in June 2023 stood at 22 days.
Springall added: “Consumers concerned about rising rates would be wise to seek advice from an independent broker to see if they can lock into a deal early, as some will let borrowers do this from three to six months in advance.
“However, there may well be some borrowers sitting on the fence, hoping the market gets a base rate cut this year, but they could still grab a lower rate deal than if they were to sit on their SVR without fixing such as with a tracker deal.
“Those about to come off a five-year fixed mortgage will have to face the reality that rates are much higher now on an equivalent deal, 2.65 per cent in fact, compared to June 2019, so consumers must ensure they can afford the higher repayments.”
tom.dunstan@ft.com
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