Fixed mortgage rates have increased in the last month but remain lower than they were in January, the latest data from Moneyfacts has revealed.
Borrowers worried about rising prices and deals being pulled from the market are being urged not to panic as the landscape is looking less volatile than last month.
Rachel Springall, finance expert at Moneyfacts, 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.
“The volatility surrounding the shelf-life of mortgage products also stabilised. These are encouraging signs for borrowers concerned about rising interest rates and the short window of opportunity to secure a new deal.”
A month ago the average shelf life for a mortgage product as 15 days – this indicates the time deals are available before they are pulled. Now, this is has risen to 22.
What’s happened to fixed mortgage rates in 2024?
It’s been a dizzying experience for anyone tracking the mortgage market this year. In January lenders went though a spate of rate cuts.
But then, in February, many of the ‘big six’ lenders began increasing rates again. And, it would seem, these rises are continuing – albeit gradually.
Moneyfacts’ data shows the average two-year fixed rate in March was 5.75% but has edged up to 5.80% today. For five year fixes, the average rate was 5.34% in March but is now 5.39%
Springall reassured borrowers, overall, things were getting better when it came to pricing.
“It is worth noting,” she said, “that both the average two- and five-year fixed rates are lower than they were back at the start of 2024.
“Borrowers will find rates are significantly lower compared to six months ago, when the average two- and five-year fixed rates were 0.67% and 0.58% higher respectively.”
How much are variable rate mortgages?
Currently, the average two-year tracker mortgage rate, according to Moneyfacts, is 6.14%. These deals go up and down in line with the Bank of England base rate so borrowers with tracker deals will be keeping a close eye on the future base rate announcements.
Meanwhile, the average standard variable rate (SVR) is 8.18%. This, said Moneyfacts, was just shy of the highest recorded (8.19%) during November and December 2023.
Product choice overall rose month-on-month, to 6,307 options, its highest level since February 2008 (6,760).
There are more deals now available for those with a 10% or 5% deposit or equity increased too.
This is good news for first-time buyers but Springall warned the cost to borrow at these levels has also increased with the average two-year fixed rates at 90% and 95% breaching 6%.
