The common two- and five-year mounted mortgage rates rose month-on-month for the first time in eight months, in keeping with the newest Moneyfacts UK Mortgage Trends Treasury Report.
Average mortgage rates on the total two- and five-year mounted rates rose by 0.02%, to 4.98% and 5.02% respectively. The final month-on-month price rise was recorded at the begin of February 2025.
At the begin of October 2024, the common five-year mounted price was 5.07%; in comparison with the begin of this month, so the price is 0.05% decrease at 5.02%. However, the common two-year mounted price has fallen by 0.42% over the identical 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 price is up from 5% month-on-month, decrease than 5.30% in October 2024, and far decrease than 6.21% in October 2023.
The combined 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 price rose to 4.67% whereas the common ‘revert to’ price or Standard Variable Rate (SVR) fell to 7.27%. In comparability, the highest recorded was 8.19% throughout November and December 2023.
Product selection total 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 depend in 17 years (1,532 – March 2008).
Commenting on the newest figures Moneyfacts finance professional Rachel Springall stated:
“Borrowers could be disenchanted to see mounted mortgage rates on the rise. Volatile swap rates and a cautionary strategy amongst lenders have led to an abrupt halt in consecutive month-to-month common price falls.”
She added that the shift in sentiment in the 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 improve is probably going a results of a relaxing mortgage market, so it will likely be attention-grabbing to see if exercise picks up ought to lenders must 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 latest years. Borrowers who locked right into a two-year mounted price 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 per 30 days in repayments on a £250,000 mortgage over 25 years.
“The repercussions of rising mounted rates and subdued sentiment stifle the Government’s push for lenders to do extra to spice up UK progress. However, even with a slight dip in product selection throughout the mortgage spectrum, the mixed amount of offers out there to debtors with a 5% or 10% deposit or fairness stands at a 17-year excessive.”
She concluded: The rest of loan-to-income guidelines is a constructive step for bettering mortgage affordability challenges, however first-time patrons are nonetheless ready for extra inexpensive housing to be constructed.”
