According to Moneyfacts’ UK Mortgage Trends Treasury Report highlighted a continuous decline in average mortgage rates for both two- and five-year fixed rate deals over six successive months
The average two-year fixed mortgage rate dropped 0.37% month-on-month – its biggest monthly decline since December 2022, according to Moneyfacts.
Its latest UK Mortgage Trends Treasury Report highlighted a continuous decline in average mortgage rates for both two- and five-year fixed rate deals over six successive months.
As of the beginning of February, the average rates for two- and five-year fixed mortgages stood at 5.56% and 5.18%, respectively. This puts the average two-year fixed rate at a 0.38% premium over its five-year counterpart.
Moreover, the SVR, often referred to as the ‘revert to’ rate, saw a marginal drop of 0.01%, settling at 8.17%. Meanwhile, the average rate for two-year tracker variable mortgages remained stable at 6.15%.
The Moneyfacts report also revealed a marginal drop in the overall number of mortgage products available to consumers, dropping to 5,787 options. This marks the first time product availability has declined since July 2023. Despite this overall drop, the availability of deals with a 95% LTV ratio reached its highest point since September 2022, offering 274 options.
Moreover, the average shelf-life of a mortgage product has risen to 28 days, the longest duration noted since February 2023.
Borrowers searching for a new mortgage deal may be delighted to know fixed mortgage rates continued their downward trend, with the average two-year fixed rate declining by its biggest margin since December 2022, noted Rachel Springall, finance expert at Moneyfacts.
Springall said: Those borrowers who have waited patiently in recent months to refinance, or indeed are preparing for when their mortgage deal expires, would be wise to review rates, as lenders are closely monitoring the volatile swap rate market, which tends to influence fixed rate pricing.