Average mortgage rates have ticked up ahead of the typically busier spring home selling season but borrowers are at least benefiting from more product choice.
Analysis from Moneyfacts shows the overall average two- and five-year fixed rates rose between the start of March and the start of April, to 5.80% and 5.39% respectively. The average two-year fixed rate stands 0.41% higher than the five-year equivalent.
Product choice overall rose month-on-month, to 6,307 options, its highest level since February 2008.
The availability of deals at the 90% loan-to-value tier also increased for a second consecutive month (774) now at its highest point in over four years.
Additionally, the number of deals at 95% loan-to-value rose for a fourth consecutive month (335) and stands at its highest count in almost two years.
The comparison website said the average shelf-life of a mortgage product stabilised to 22 days, up from 15 days at the start of March 2024.
Rachel Springall, finance expert at Moneyfacts, said: “It is worth noting that both the average two- and five-year fixed rates are lower than they were back at the start of 2024. Borrowers will find rates are significantly lower compared to six months ago, when the average two- and five-year fixed rates were 0.67% and 0.58% higher respectively.
“The growth in choice is good news for first-time buyers, who may be struggling to find an affordable property. Those with limited deposits will find the cost to borrow at higher loan-to-values across the two- and five-year fixed rates rose month-on-month, with the average two-year fixed rates at 90% and 95% breaching 6%.”
