The common two- and five-year fastened mortgage rates rose month-on-month for the first time in eight months, in accordance with the newest Moneyfacts UK Mortgage Trends Treasury Report.
Average mortgage rates on the general two- and five-year fastened rates rose by 0.02%, to 4.98% and 5.02% respectively. The final month-on-month fee rise was recorded at the begin of February 2025.
At the begin of October 2024, the common five-year fastened fee was 5.07%; in comparison with the begin of this month, so the fee is 0.05% decrease at 5.02%. However, the common two-year fastened fee has fallen by 0.42% over the similar interval, down from 5.40% to 4.98%.
The Moneyfacts Average Mortgage Rate rose for the first time since February 2025 to five.02%. The fee is up from 5% month-on-month, decrease than 5.30% in October 2024, and far decrease than 6.21% in October 2023.
The blended strikes from lenders led to a rise in the common lifetime of a mortgage, as much as 22 days, from 17 days a month prior. This is the first time the common shelf-life has moved above 20 days for six months (21 days – April 2025).
The common two-year tracker variable mortgage fee rose to 4.67% whereas the common ‘revert to’ fee or Standard Variable Rate (SVR) fell to 7.27%. In comparability, the highest recorded was 8.19% throughout November and December 2023.
Product alternative general fell month-on-month, to six,998 choices.
The mixture in availability of offers at each the 95% and 90% loan-to-value tiers rose to 1,362 choices, which stays the highest rely in 17 years (1,532 – March 2008).
Commenting on the newest figures Moneyfacts finance skilled Rachel Springall mentioned:
“Borrowers might be dissatisfied to see fastened mortgage rates on the rise. Volatile swap rates and a cautionary method amongst lenders have led to an abrupt halt in consecutive month-to-month common fee falls.”
She added that the shift in sentiment in direction of pre-pricing and product churn throughout September had led to a rise in the common shelf-life of a mortgage, to 22 days, the first leap above 20 days for six months.
“This enhance is probably going a results of a relaxing mortgage market, so it is going to be fascinating to see if exercise picks up ought to lenders have to hit any year-end targets. “
Springall insisted it was not all doom and gloom for debtors, as the mortgage market had proven how far it had improved over current years. Borrowers who locked right into a two-year fastened fee deal again in October 2023 would have been paying 6.47% in curiosity on common, in comparison with 4.98% now. That is a distinction of £225 monthly in repayments on a £250,000 mortgage over 25 years.
“The repercussions of rising fastened rates and subdued sentiment stifle the Government’s push for lenders to do extra to spice up UK development. However, even with a slight dip in product alternative throughout the mortgage spectrum, the mixed amount of offers accessible to debtors with a 5% or 10% deposit or fairness stands at a 17-year excessive.”
She concluded: The leisure of loan-to-income guidelines is a constructive step for bettering mortgage affordability challenges, however first-time consumers are nonetheless ready for extra reasonably priced housing to be constructed.”
