Moneyfacts UK Mortgage Trends Treasury Report reveals that both 2-year and 5-year fixed mortgage rates have seen significant increases in the past month, marking the largest monthly rise since March 2024.
As of the start of May, the 2-year fixed rates have climbed to 5.91% and 5-year fixed rates to 5.48%, marking a notable gap of 0.43% between them, the widest in six months.
Rachel Springall, finance expert at Moneyfacts, said: “The volatile swap rates have prompted lenders to adjust their mortgage rates upwards across all loan-to-value tiers.
“However, despite these increases, the availability of mortgage products remains high, with the total reaching the highest level since February 2008. This suggests that while rates are rising, the market is still competitive.”
Springall added: “This environment offers an opportunity for borrowers, particularly those coming off older, lower-rate mortgages or those sitting on higher revert rates. With the current average rates, securing a fixed mortgage now could be more economical than defaulting to a standard variable rate.”
