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What’s happened to mortgage and savings rates since 2010?

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James Hyde, Press & PR Manager
James Hyde, Press & PR Manager T: 01603 476205 E: Email James
11/06/2024

What’s happened to mortgage and savings rates since 2010?

Moneyfactscompare.co.uk takes a look at how average mortgage and savings rates have fluctuated over the past 14 years.

What’s happened to mortgage and savings rates since 2010?

Moneyfactscompare.co.uk takes a look at how average mortgage and savings rates have fluctuated over the past 14 years.

 

  • Average two-year fixed mortgage rates fluctuated by less than 1% (between 1.99% and 2.97%) across seven years between April 2015 and April 2022, with five-year fixed deals remaining similarly steady during that time period.
  • The average two-year fixed mortgage rate was less than 2% (1.99%) in July 2020, but had more than tripled to 6.85% just over three years later in the aftermath of base rate rises and the 2022 mini-Budget announcement.
  • For almost 10 years between December 2012 and October 2022, the average no-notice savings rate was less than 1%. From April to June 2021, the average easy access account paid just 0.16% in interest – or £16 for every £10,000 deposited. By October 2023, average rates had reached over 3%, where they remain today.
  • The gap between the average two-year mortgage rate and the average no-notice savings rate shrank from 3.87% in May 2010 to 2.82% in June 2024.

 

 

  • Average two-year fixed mortgage rates fluctuated by less than 1% (between 1.99% and 2.97%) across seven years between April 2015 and April 2022, with five-year fixed deals remaining similarly steady during that time period.
  • The average two-year fixed mortgage rate was less than 2% (1.99%) in July 2020, but had more than tripled to 6.85% just over three years later in the aftermath of base rate rises and the 2022 mini-Budget announcement.
  • For almost 10 years between December 2012 and October 2022, the average no-notice savings rate was less than 1%. From April to June 2021, the average easy access account paid just 0.16% in interest – or £16 for every £10,000 deposited. By October 2023, average rates had reached over 3%, where they remain today.
  • The gap between the average two-year mortgage rate and the average no-notice savings rate shrank from 3.87% in May 2010 to 2.82% in June 2024.

 

Mortgages and Savings Average Rates* - May 2010 to June 2024

 

Lowest average rate

Highest average rate

Overall average rate**

Average rate 1 June 2024

2-Year Fixed Mortgage

1.99% (Jul 2020)

6.85% (Aug 2023)

3.46%

5.93%

5-Year Fixed Mortgage

2.25% (Jul 2020)

6.37% (Aug 2023)

3.83%

5.50%

No Notice Savings

0.16% (Apr-Jun 2021)

3.19% (Nov 2023)

0.83%

3.11%

1-Year Fixed Savings

0.43% (Apr 2021)

5.44% (Oct 2023)

1.90%

4.60%

*Calculated on a first of month basis, based on £10k gross. **Mean average of all first of month average rates in stated time frame. Data correct as of 1.6.24.
Source: Moneyfactscompare.co.uk

 

 

Mortgages and Savings Average Rates* - May 2010 to June 2024

 

Lowest average rate

Highest average rate

Overall average rate**

Average rate 1 June 2024

2-Year Fixed Mortgage

1.99% (Jul 2020)

6.85% (Aug 2023)

3.46%

5.93%

5-Year Fixed Mortgage

2.25% (Jul 2020)

6.37% (Aug 2023)

3.83%

5.50%

No Notice Savings

0.16% (Apr-Jun 2021)

3.19% (Nov 2023)

0.83%

3.11%

1-Year Fixed Savings

0.43% (Apr 2021)

5.44% (Oct 2023)

1.90%

4.60%

*Calculated on a first of month basis, based on £10k gross. **Mean average of all first of month average rates in stated time frame. Data correct as of 1.6.24.
Source: Moneyfactscompare.co.uk

 

 

James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:

“Mortgage rates may have fallen significantly since peaking last year, but they remain much higher than they’ve typically been over the past 14 years.

“For example, those who are coming to the end of a five-year fix in June 2024 can expect to see their interest payments almost double, with average rates rising from 2.85% then to 5.5% now. If they wish to fix for a shorter term to keep their future options open, rates will be even higher: the average two-year is currently close to 6%.

“Savers are at least seeing real-terms profit on their deposits right now, with easy access accounts having paid an average of less than 1% since May 2010 - despite the average inflation figure over the same time period being over 3%.

“Currently, the average easy access account pays more than inflation – for the first time in almost four years, when inflation was just 0.2%. Savers would be encouraged to consider all the options available to them, as easy access rates can be changed on a very reactive basis.”

James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:

“Mortgage rates may have fallen significantly since peaking last year, but they remain much higher than they’ve typically been over the past 14 years.

“For example, those who are coming to the end of a five-year fix in June 2024 can expect to see their interest payments almost double, with average rates rising from 2.85% then to 5.5% now. If they wish to fix for a shorter term to keep their future options open, rates will be even higher: the average two-year is currently close to 6%.

“Savers are at least seeing real-terms profit on their deposits right now, with easy access accounts having paid an average of less than 1% since May 2010 - despite the average inflation figure over the same time period being over 3%.

“Currently, the average easy access account pays more than inflation – for the first time in almost four years, when inflation was just 0.2%. Savers would be encouraged to consider all the options available to them, as easy access rates can be changed on a very reactive basis.”

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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James Hyde Press & PR Manager
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant