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Fixed mortgage rates have risen modestly over the past month, with the average two-year fixed rate reaching 5.8%, according to Moneyfacts research.
The average two-year fixed rate has increased from 5.76% in March 2024, according to the Moneyfacts UK Mortgage Trends Treasury Report. However, it remains low compared to January 2024.
The overall average two-year fixed interest rate and five-year fixed interest rate increased from the beginning of March to the beginning of April, to 5.80% and 5.39%, respectively.
The average 2-year fixed rate is 0.41% higher than the 5-year fixed rate.
The average “return” interest rate or standard variable rate (SVR) remained at 8.18%, just short of the peak recorded in November-December 2023 (8.19%).
The average two-year tracker variable mortgage fell to 6.14%.
Overall product choices increased month-on-month to 6,307 choices, the highest level since February 2008 (6,760).
The number of available transactions for the 90% loan-to-value tier increased for the second consecutive month (774 transactions) and is now the highest in over four years (779 transactions, March 2020). The number of 95% loan-to-value transactions increased for the fourth consecutive month (335 transactions) and hit the highest number in nearly two years (347 transactions, June 2022).
The average shelf life for mortgage products stabilized at 22 days from 15 days at the beginning of March 2024. The shortest average retention period on our records was his 12 days in July 2023.
Mortgage market analysis | ||||||
April 22nd | April 23rd | October 23rd | March 24th | April 24th | ||
Fixed rate products and floating rate products | Total products – all LTV | 4,925 | 5,146 | 5,495 | 6,004 | 6,307 |
Number of products – LTV 95% | 367 | 204 | 252 | 318 | 335 | |
Number of products – LTV 90% | 665 | 684 | 648 | 761 | 774 | |
Number of products – LTV 60% | 529 | 702 | 585 | 677 | 723 | |
all products | Best before date (days) | twenty one | twenty one | 16 | 15 | twenty two |
All LTV | Average 2 year fixed interest rate | 2.86% | 5.35% | 6.47% | 5.76% | 5.80% |
Average 5 year fixed interest rate | 3.01% | 5.05% | 5.97% | 5.34% | 5.39% | |
95% LTV | Average 2 year fixed interest rate | 3.19% | 5.89% | 6.74% | 5.99% | 6.03% |
Average 5 year fixed interest rate | 3.37% | 5.27% | 6.08% | 5.46% | 5.53% | |
90% LTV | Average 2 year fixed interest rate | 2.94% | 5.64% | 6.39% | 5.99% | 6.04% |
Average 5 year fixed interest rate | 3.11% | 5.26% | 5.78% | 5.49% | 5.49% | |
60% LTV | Average 2 year fixed interest rate | 2.35% | 4.95% | 6.16% | 5.23% | 5.29% |
Average 5 year fixed interest rate | 2.46% | 4.65% | 5.65% | 4.86% | 4.95% | |
All LTV | Standard variable rate (SVR) | 4.71% | 7.30% | 8.18% | 8.18% | 8.18% |
All LTV | 2 year average tracker rate | 2.21% | 5.02% | 6.17% | 6.15% | 6.14% |
Unless otherwise noted, data shown is for the first available day of the month. | ||||||
Source: Moneyfacts Financial Report |
Rachel Springall, financial expert at Money Facts, said: “Fixed mortgage rates have continued their upward trajectory, but overall average two-year fixed mortgage rates and five-year fixed mortgage rates have risen much more slowly. ” he said. Fluctuations in the shelf life of mortgage products have also stabilized. These are encouraging signs for borrowers worried about rising interest rates and a short window of opportunity to get new business. It’s worth noting that the average two-year fixed rate and his five-year fixed rate are both lower than they were at the beginning of 2024. The borrower will notice that the average of his 2-year fixed rate and his 5-year fixed rate is significantly lower than he was 6 months ago. Fixed interest rates were 0.67% and 0.58% higher, respectively.
“The availability of mortgage products continues to expand, with overall choice of housing products reaching its highest level in more than 16 years. More detailed analysis means higher loan-to-value ratios available It shows that the number of transactions has increased. In fact, for a loan-to-value of 90%, the number of transactions increases for one consecutive month, and transactions with a loan-to-value of 95% also increase. The combined number of transactions with these ratios now stands at 1,109, which is good news for borrowers with limited savings or capital. Good news for first-time buyers: those with limited savings will find the cost of borrowing higher month-on-month on both the 2-year fixed rate and 5-year fixed rate, as well as the 2-year fixed rate. The average will be above 6% at 90% and 95%.
“Incentives to refinance to a fixed rate mortgage can be a smart option if the average standard variable rate (SVR) is above 8% despite fixed rates rising. Borrowers coming to the end of a five-year fixed rate could be paying up to 3% more in mortgage interest, up from an average of 2.50%. In fact, the average interest rate for a two-year fixed mortgage in April 2022 is 2.86%. , the average interest rate for a five-year fixed mortgage was 2.88% in April 2019. To navigate all the deals available and decide which is the most cost-effective option, check out our advice It is a wise choice to ask for it.”