The cost of short-term fixed rate mortgage products has reduced over the past six months, despite the recent price increases in the last month, according to market analysis by Moneyfacts. 

However, its analysis shows that longer-term fixes and SVRs have all increased over this six-month period. 

Figures show that since the start of September last year, the average two-year rate has fallen from 6.70% to 5.76%, and the average five-year fix  has fallen from 6.19% to 5.34%.

However both two and five-year fixes have increased significantly in the past month, up from 5.56% and 5.18% respectively. 

On a 10-year fixed rate mortgage, the average rate has risen from 5.82% to 5.98% since September 2023. This rate has also increased in the past month, having risen from 5.87% since the start of February 2024.

Meanwhile the average standard variable rate (SVR) stands at 8.18% — up from 8.09% in September 2023. The rate has risen slightly from 8.17% since the start of February 2024.

Moneyfacts finance expert Rachel Springall says: “The downward turn in fixed mortgage rates has gone in the opposite direction over the past month, with lenders vigorously re-pricing deals in response to volatile swap rates.”

She adds: “The last time the Bank of England increased base rate was back in August 2023, but no change does not mean stagnation in mortgage rates as other influences remain at play, so borrowers must not be complacent if they are searching for a new deal.”

She points out that lenders been quick to reassess their rate pricing over the past month in light of new economic data, with many deals being pulled from the market.

She says borrowers worried about securing a new deal would be wise to seek advice from an independent broker, particularly with the average SVR now standing above 8% — significantly higher than the average two-year fixed rate. 

Springer says that a typical mortgage of £200,000 (on a 25-year repayment term) being charged the current average SVR of 8.18% would be paying around £308 more per month, compared to a typical two-year fixed rate on 5.76%.