Mortgage rates rise for the first time in eight months

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The average two- and five-year fixed mortgage rates rose month-on-month for the first time in eight months, according to the latest Moneyfacts UK Mortgage Trends Treasury Report.

Average mortgage rates on the overall two- and five-year fixed rates rose by 0.02%, to 4.98% and 5.02% respectively. The last month-on-month rate rise was recorded at the start of February 2025.

At the start of October 2024, the average five-year fixed rate was 5.07%; compared to the start of this month, so the rate is 0.05% lower at 5.02%. However, the average two-year fixed rate has fallen by 0.42% over the same period, down from 5.40% to 4.98%.

The Moneyfacts Average Mortgage Rate rose for the first time since February 2025 to 5.02%. The rate is up from 5% month-on-month, lower than 5.30% in October 2024, and much lower than 6.21% in October 2023.

The mixed moves from lenders led to a rise in the average life of a mortgage, up to 22 days, from 17 days a month prior. This is the first time the average shelf-life has moved above 20 days for six months (21 days – April 2025).

The average two-year tracker variable mortgage rate rose to 4.67% while the average ‘revert to’ rate or Standard Variable Rate (SVR) fell to 7.27%. In comparison, the highest recorded was 8.19% during November and December 2023.

Product choice overall fell month-on-month, to 6,998 options.

The combination in availability of deals at both the 95% and 90% loan-to-value tiers rose to 1,362 options, which remains the highest count in 17 years (1,532 – March 2008).

Commenting on the latest figures Moneyfacts finance expert Rachel Springall said:

“Borrowers may well be disappointed to see fixed mortgage rates on the rise. Volatile swap rates and a cautionary approach among lenders have led to an abrupt halt in consecutive monthly average rate falls.”

She added that the shift in sentiment towards pre-pricing and product churn during September had led to a rise in the average shelf-life of a mortgage, to 22 days, the first jump above 20 days for six months.

“This increase is likely a result of a calming mortgage market, so it will be interesting to see if activity picks up should lenders need to hit any year-end targets. “

Springall insisted it was not all doom and gloom for borrowers, as the mortgage market had shown how far it had improved over recent years. Borrowers who locked into a two-year fixed rate deal back in October 2023 would have been paying 6.47% in interest on average, compared to 4.98% now. That is a difference of £225 per month in repayments on a £250,000 mortgage over 25 years.

“The repercussions of rising fixed rates and subdued sentiment stifle the Government’s push for lenders to do more to boost UK growth. However, even with a slight dip in product choice across the mortgage spectrum, the combined quantity of deals available to borrowers with a 5% or 10% deposit or equity stands at a 17-year high.”

She concluded: The relaxation of loan-to-income rules is a positive step for improving mortgage affordability challenges, but first-time buyers are still waiting for more affordable housing to be built.”


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