Mortgage rates have fallen across the spectrum and overall product choice has grown month-on-month. This is according to Moneyfacts UK Mortgage Trends Treasury Report data.
The report shows that average fixed mortgage rates across all LTV tiers on two- and five-year fixed rate deals fell for a second consecutive month.
The overall average two- and five-year fixed rates fell between the start of September and the start of October, to 6.47% and 5.97% respectively. The average two-year fixed rate stands at 0.50% higher than the average five-year equivalent, a marginally narrower gap than the 0.51% difference last month.
The average ‘revert to’ rate or Standard Variable Rate (SVR) continued to climb. At 8.18%, this rate is at the highest level on Moneyfacts’ electronic records (starting July 2007).
The average two-year tracker variable mortgage rate fell month-on-month to stand at 6.17%.
Product choice rose month-on-month to 5,495 options, the highest level of availability in over 15 years.
The last time there were more deals available was March 2008 (6,192 products). There is also currently a record number of deals available at the 75% LTV tier (1,014). This continues the trend of increased stability in the market.
The average shelf life of a mortgage product rose to 16 days. This has now increased for three consecutive months from a low of 12 days in July, which was the shortest average shelf life on Moneyfacts’ records.
Moneyfacts finance expert Rachel Springall comments: “Fixed mortgage rates have fallen across the spectrum, signalling a positive change in the market. Overall, the average two- and five-year fixed rates have now fallen for the second month running, so borrowers could find cheaper deals to choose from”.
She adds: “These are encouraging signs for borrowers who may be looking for a new fixed rate deal, but they still may be on the fence about locking in, hoping rates will fall further in the weeks to come.
“Those with a limited deposit will find the average five-year fixed rate at 90% loan-to-value has dropped below 6% for the first time since July 2023 (5.81%) and is at its lowest point since June 2023”.
