Average mortgage rates for two and five-year fixes have risen for the first time in eight months, data from Moneyfacts has revealed.
The Moneyfacts UK Mortgage Trends Treasury Report found the average two-year fixed rate mortgage and the average five-year fixed rate rose by 0.02 per cent over October to 4.98 per cent and 5.02 per cent respectively.
This represents the first time average fixed-rate mortgages have increased since February of this year.
Despite this, average rates still fall behind the rates recorded one year earlier as in October 2024 the two-year average stood at 5.40 per cent.
Similarly, the average five-year fixed rate was 5.07 per cent.
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.
“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.”
Moneyfacts’s data also found an increase in the average shelf-life of a mortgage, which rose to 22 days in October.
This is higher than the dip of 17 days recorded in September but also an increase when compared to October 2024 when the average stood at 21 days.
“The repercussions of rising fixed rates and subdued sentiment stifle the government’s push for lenders to do more to boost UK growth,” Springall added.
“However, even with a slight dip in product choice across the mortgage spectrum, the combined quantity of deals available to borrowers with a 5 per cent or 10 per cent deposit or equity stands at a 17-year high.
“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.”
tom.dunstan@ft.com
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