The average five-year fixed rate in November had the biggest monthly increase since August 2023, as lenders repriced products due to volatile swap rates, Moneyfacts data reveals.

Average mortgage rates overall on five-year fixed rates increased by 0.19% to 5.28% at the start of December.

Meanwhile, the average two-year fixed rate went up by 0.13% to 5.52%.

At the start of January 2024, the average five-year fixed rate was 0.27% lower at 5.55% compared to the current rate.

However, the average two-year fixed rate has dropped by 0.41% over the same period, down from 5.93%.

The average two-year fixed rate is 0.24% higher than the five-year equivalent, compared to 0.30% a month prior.

Data shows that the two-year fixed rate has now been higher than the five-year equivalent since October 2022.

Elsewhere, the average two-year tracker variable mortgage rate fell to 5.46% while the average ‘revert to’ rate or standard variable rate (SVR) fell to 7.85%.

The overall product choice also went up month-on-month to 6,486 options, which was the biggest monthly increase since June 2024. However, product numbers are higher than 12 months ago when they stood at 5,694.

The availability of deals at 95% loan-to-value (LTV) increased to 365, which is the highest point in over two years.

Data also found that the average shelf-life of a mortgage product rose to 21 days, up from 17 days a month prior.

Moneyfacts finance expert Rachel Spingall says: “This month the average five-year fixed rate felt a notable monthly rise, and during 2024 the rate has not fallen as much as its two-year counterpart.”

“This will come as disappointing news to those borrowers who prefer to lock into a deal for the longer-term. On the other end of the spectrum, both the average two-year tracker rate and SVR fell in the aftermath of the Bank of England base rate cut.”

Springall adds: “One positive outcome of November was a slight uptick in product availability, and a calming in the average shelf-life of a mortgage, which rose from 17 days to 21 days.”

“This indicates that lenders are not re-pricing or pulling deals as aggressively as they were during October. However, lenders will now need to grapple with any future uncertainty surrounding interest rate pricing while aiming to hit any year-end targets.”

“Borrowers will hope that mortgage rates will drop next year, and while there is speculation over multiple cuts to the Bank of England base rate, stubborn inflation can delay such decisions. In addition, the present market proves that a base rate cut does not always mean fixed mortgage rates will immediately fall if there are other economic challenges in play for lenders to consider.”