Interest rates for home loan borrowers have been on a rollercoaster ride over the last six months, data from Moneyfacts shows.     

Since the start of November, the average two-year fixed rate has fallen from 6.29% to 5.91% and the average five-year fixed rate has fallen from 5.86% to 5.48%, the data firm says.  

But these average rates have risen from 5.80% and 5.39%, respectively, over the last month.  

Its analysis of the rises and falls of mortgage rates comes as the Bank of England is expected to keep the base rate at a 16-high year of 5.25% today, where it has remained since last August as the central bank battles to bring down inflation at 3.2%.

Some 1.6 million homeowners are expected to renew their mortgages this year, with many coming off sub-2% deals.  

Moneyfacts finance expert Rachel Springall says: “Borrowers may be disappointed to see fixed mortgage rates are on the rise. As has been the case since October 2022, the average five-year fixed mortgage rate remains below its two-year counterpart, which edges ever closer to 6%, not seen since December.   

“Lenders have been busy reviewing their fixed rate pricing in response to volatile swap rates, seeing month-on-month rises.

Springall adds: “However, fixed rates are lower than they were six months ago, so consumers who are now coming off a two- or five-year fixed mortgage would be wise to act quickly to grab a competitive deal, particularly as some lenders have withdrawn deals priced below 5%.   

“The mortgage market continues to be fluid despite no change to the Bank of England base rate since August, and market forecasts have pushed back imminent cuts, due to stubborn inflation.”