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Average fixed rate mortgages hit highest level in over five years

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
11/04/2022

Rates are rising and the shelf-life of mortgages is falling, as lenders pull products and relaunch new, more expensive deals

Average two-year fixed rate mortgages have risen to 2.86%, said Moneyfacts, the highest level since June 2015.

The financial information provider said that, at 3.01%, five-year fixes are the highest since October 2016, following a 0.13% month-on-month increase.

It also noted that, with only 0.15% separating these two rates, the margin between these is the smallest since February 2013, a tiny premium for longer term payment security.

Variable rates up as expected

The average two-year tracker rate rose by 0.18% month-on-month to 2.21%. This is an increase of 0.63% since December 2021 – almost in line with the 0.65% rise the Bank of England base rate has experienced over the same time period.

Average Standard Variable Rates (SVRs) increased again too, rising by 0.10% to 4.71% this month. Since December 2021 SVRs have risen by 0.31%.

Eleanor Williams, finance expert at Moneyfacts, said: “Those hoping to secure a new mortgage may wish to act sooner rather than later to lock in a competitive option, as not only have average rates continued on an upwards trajectory this month, but prospective borrowers may find that their selected products are not on offer for long.

“April saw mortgage shelf-life plunge to 21 days, equal to the record low last recorded in August 2021, and reflecting a busy period of re-pricing as lenders have reacted to three back-to-back base rate rises and continued wider economic volatility.