Fixed mortgage rates continue to rise

Fixed mortgage rates continue to rise
Christina Hoghton
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Christina Hoghton

Fixed rates rose more quickly in April than during the previous month, according to Moneyfacts.

The financial information provider found that average two- and five-year fixed rates rose between the start of April and the start of May to 5.91% and 5.48% respectively.

Despite the increase, they are still slightly lower than the rates recorded in January.

The overall five-year fixed rate is now 0.43 percentage points lower than the average two-year deal, the largest gap between the two in six months.

The average standard variable rate (SVR) remains at 8.18%, just shy of the highest recorded (8.19%) during November and December 2023.

The average two-year tracker variable mortgage fell to 6.12%.

More mortgages on offer

Product choice overall rose month-on-month to 6,565 options, its highest level since February 2008 (6,760), said Moneyfacts.

The availability of deals at the 90% loan-to-value (LTV) tier – for borrowers with a 10% deposit – increased for the third month in a row (791), to reach its highest point in over 16 years. The number of deals at 95% LTV rose for a fifth consecutive month (347) to its highest count in almost two years.

Rachel Springall, finance expert at Moneyfacts, said: “Borrowers may be concerned by these movements, but one positive point to take from the latest trends is that mortgage shelf life has stabilised to 28 days.

“Despite lenders pulling selected fixed deals, some of which were priced below 5%, there was not a mass exit of products. It was evident that repricing during April was the clear focus among lenders, and in fact, mortgage product availability rose.

“As reported last month, overall product availability is at its highest point in over 16 years, and another month-on-month growth, of 258 deals, is positive to see this month.”

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