Fixed mortgage rates rise modestly and choice grows

Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel

Fixed mortgage rates rise modestly and choice grows

Moneyfacts UK Mortgage Trends Treasury Report data reveals the overall average two- and five-year fixed mortgage rates rose, but more modestly compared to a month prior. Product choice overall rose, but so did options for higher loan-to-value deals.

Fixed mortgage rates rise modestly and choice grows

Average mortgage rates on the overall two- and five-year fixed rate deals rose, but more modestly compared to the month prior. However, these remain lower compared to January 2024.
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.
The average ‘revert to’ rate or Standard Variable Rate (SVR) remained at 8.18%, just shy of the highest recorded (8.19%) during November and December 2023.
The average two-year tracker variable mortgage fell to 6.14%.
Product choice overall rose month-on-month, to 6,307 options, its highest level since February 2008 (6,760).
The availability of deals at the 90% loan-to-value tier increased for a second consecutive month (774) now at its highest point in over four years (779 – March 2020). 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 (347 – June 2022).
The average shelf-life of a mortgage product stabilised to 22 days, up from 15 days at the start of March 2024. The lowest shelf-life average on our records was 12 days in July 2023.

Average mortgage rates on the overall two- and five-year fixed rate deals rose, but more modestly compared to the month prior. However, these remain lower compared to January 2024.
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.
The average ‘revert to’ rate or Standard Variable Rate (SVR) remained at 8.18%, just shy of the highest recorded (8.19%) during November and December 2023.
The average two-year tracker variable mortgage fell to 6.14%.
Product choice overall rose month-on-month, to 6,307 options, its highest level since February 2008 (6,760).
The availability of deals at the 90% loan-to-value tier increased for a second consecutive month (774) now at its highest point in over four years (779 – March 2020). 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 (347 – June 2022).
The average shelf-life of a mortgage product stabilised to 22 days, up from 15 days at the start of March 2024. The lowest shelf-life average on our records was 12 days in July 2023.

Mortgage market analysis
		Apr-22	Apr-23	Oct-23	Mar-24	Apr-24
Fixed and variable rate products	Total product count - all LTVs	4,925	5,146	5,495	6,004	6,307
	Product count - 95% LTV	367	204	252	318	335
	Product count - 90% LTV	665	684	648	761	774
	Product count - 60% LTV	529	702	585	677	723
All products	Shelf life (days)	21	21	16	15	22
All LTVs	Average two-year fixed rate	2.86%	5.35%	6.47%	5.76%	5.80%
All LTVs	Average five-year fixed rate	3.01%	5.05%	5.97%	5.34%	5.39%
95% LTV	Average two-year fixed rate	3.19%	5.89%	6.74%	5.99%	6.03%
95% LTV	Average five-year fixed rate	3.37%	5.27%	6.08%	5.46%	5.53%
90% LTV	Average two-year fixed rate	2.94%	5.64%	6.39%	5.99%	6.04%
90% LTV	Average five-year fixed rate	3.11%	5.26%	5.78%	5.49%	5.49%
60% LTV	Average two-year fixed rate	2.35%	4.95%	6.16%	5.23%	5.29%
60% LTV	Average five-year fixed rate	2.46%	4.65%	5.65%	4.86%	4.95%
All LTVs	Standard Variable Rate (SVR)	4.71%	7.30%	8.18%	8.18%	8.18%
All LTVs	Average two-year tracker rate	2.21%	5.02%	6.17%	6.15%	6.14%
Data shown is as at the first available day of the month, unless stated otherwise.
Source: Moneyfacts Treasury Reports

Mortgage market analysis
		Apr-22	Apr-23	Oct-23	Mar-24	Apr-24
Fixed and variable rate products	Total product count - all LTVs	4,925	5,146	5,495	6,004	6,307
	Product count - 95% LTV	367	204	252	318	335
	Product count - 90% LTV	665	684	648	761	774
	Product count - 60% LTV	529	702	585	677	723
All products	Shelf life (days)	21	21	16	15	22
All LTVs	Average two-year fixed rate	2.86%	5.35%	6.47%	5.76%	5.80%
All LTVs	Average five-year fixed rate	3.01%	5.05%	5.97%	5.34%	5.39%
95% LTV	Average two-year fixed rate	3.19%	5.89%	6.74%	5.99%	6.03%
95% LTV	Average five-year fixed rate	3.37%	5.27%	6.08%	5.46%	5.53%
90% LTV	Average two-year fixed rate	2.94%	5.64%	6.39%	5.99%	6.04%
90% LTV	Average five-year fixed rate	3.11%	5.26%	5.78%	5.49%	5.49%
60% LTV	Average two-year fixed rate	2.35%	4.95%	6.16%	5.23%	5.29%
60% LTV	Average five-year fixed rate	2.46%	4.65%	5.65%	4.86%	4.95%
All LTVs	Standard Variable Rate (SVR)	4.71%	7.30%	8.18%	8.18%	8.18%
All LTVs	Average two-year tracker rate	2.21%	5.02%	6.17%	6.15%	6.14%
Data shown is as at the first available day of the month, unless stated otherwise.
Source: Moneyfacts Treasury Reports

Rachel Springall, Finance Expert at Moneyfacts, said:

“Fixed mortgage rates have continued on an upward trajectory, but the rises to the overall average two- and five-year fixed mortgage rates were much more modest. The volatility surrounding the shelf-life of mortgage products also stabilised. These are encouraging signs for borrowers concerned about rising interest rates and the short window of opportunity to secure a new deal. 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.

“Mortgage product availability continues to thrive, with the overall choice of residential products reaching its highest point in over 16 years. Deeper analysis shows that the number of deals available at higher loan-to-value ratios rose. Indeed, at 90% loan-to-value, the number of deals increased for a consecutive month, as did deals at 95% loan-to-value. There are now 1,109 deals at these ratios combined, positive news for borrowers with a limited deposit or equity. 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%.

“Despite rising fixed rates, the incentive to refinance with a fixed rate mortgage is a sensible option when the average Standard Variable Rate (SVR) is over 8%. However, borrowers who will come off a two- or five-year fixed rate this year may be paying between 2.50% and up to 3% more in interest on their mortgage on average. Indeed, in April 2022, the average two-year fixed mortgage rate was 2.86%, and in April 2019 the average five-year fixed mortgage rate was 2.88%. Seeking advice is a wise choice to help navigate all the deals available and to work out which one would be the most cost-effective option.”

Rachel Springall, Finance Expert at Moneyfacts, said:

Notes to editors

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

Moneyfacts is the UK's leading independent provider of finance product data. For over 35 years Moneyfacts' information has been a key driver behind personal finance product decisions.

For more information about us please see our key facts.

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Notes to editors

Pioneering financial comparison technology for over 35 years.

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

Moneyfacts is the UK's leading independent provider of finance product data. For over 35 years Moneyfacts' information has been a key driver behind personal finance product decisions.

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.

If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.

James Hyde Press & PR Manager

T: 01603 476205

E: Email James

Rachel Springall Press Officer / Finance Expert

T: 01603 476210

E: Email Rachel

Caitlyn Eastell Apprentice Press & PR Assistant

T: 01603 476169

E: Email Caitlyn