Average fixed-rate home loan deals have ticked up over the last month, data from Moneyfacts shows, as the market waits for an expected base rate hold from the Bank of England at noon.  

The average two-year fix has fallen from 6.04% to 5.93% since the start of December, while the average five-year fix has fallen from 5.65% to 5.50%.  

However, these average rates have risen from 5.91% and 5.48%, respectively, over the last month.  

On a 10-year fix, the average rate has risen from 5.96% to 6.03% since December. This rate has risen from 5.97% since the start of May.  

The average standard variable rate stands at 8.18%, down from 8.19% in December — and has not changed month-on-month.  

The data from Moneyfacts comes as the BoE’s rate-setting Monetary Policy Committee is expected to hold the base rate at its 16-year high of 5.25% later today,   

The base rate has remained at that level since last August, with the last central bank cut coming in March 2020.     

Economists expect the MPC to hold rates, despite inflation falling to the central bank’s 2% target yesterday because of concerns of the high rate of services inflation at 5.9%.  

Moneyfacts finance expert Rachel Springall says: “The rising cost of mortgages may cause deep concern for borrowers about to come off a fixed rate deal and needing to refinance.   

“Affordability is a pressing point for both homeowners looking to refinance and new buyers, so those struggling to see how they can afford mortgage repayments will no doubt be desperate for interest rates to come down.   

“Homeowners unsure on whether to lock into a new fixed rate mortgage may still find it more affordable than falling onto a standard variable rate, which stands above 8%.   

“This rate has almost doubled since the BoE started increasing base rate back in December 2021. A typical mortgage being charged the current average standard variable rate of 8.18% would be paying £287 more per month, compared to a typical two-year fixed rate of 5.93%.”  

Springall adds: “Due to volatile swap rates, lenders have been increasing fixed mortgage rates, but are also withdrawing some deals priced below 5%.   

“As a result, the average two-year fixed rate is nearing where it stood six months ago, undoing the positive rate cut momentum seen during the first quarter of 2024. The average five-year fixed rate has remained above 5% since June 2023, dipping above and below 6% over the past six months.   

“At present, it’s cheaper to lock into a five-year fixed mortgage than a two-year deal, based on average rates, which has been the case since October 2022.   

“First-time buyers who are struggling to get onto the property ladder and don’t have the ‘Bank of Mum and Dad’ to lean on may feel getting a mortgage is too far out of reach right now.”