The average standard variable rate is now the highest since February 2009, when it was 4.94%
The average standard variable rate (SVR) in June has surged to 4.91%, its highest rate for 13 years following a series of base rate hikes, according to the latest Moneyfacts UK Mortgage Trends Treasury Report.
Average standard variable rates lifted by 13 basis points this month compared to May and have jumped by 51bps from last December, when the Bank of England began a series of five base rate hikes in a row lifting it to 1.25% from 0.1%.
The data group says the average standard variable rate is now the highest it has recorded since February 2009, when it was 4.94%, beating the pre-pandemic average revert to rate of 4.90% in March 2020.
The report adds that for the eighth consecutive month the average overall two-year fixed rate has risen. At 3.25%, the overall average two-year fixed rate has lifted by 22bps since last month, and by 91bps since last December. The highest rate posted since November 2014 when it was 3.31%.
The overall five-year fixed-rate average now sits at 3.37% following a month-on-month increase of 20bps, a seven-year high from June 2015 when it hit 3.38%, and 73bps higher than the equivalent rate last December. The study says that this means that the margin between the average two and five-year fixed rates is now just 12bps – the smallest this differential since February 2013.
The report adds that the average two-year tracker rate has climbed to 2.54%, an increase of 27bps compared to last month, and a rise of 96bps compared to the equivalent rate from last December when it was 1.58%. This is the highest level recorded since September 2014, when it was 2.61%.
Moneyfacts finance expert Eleanor Williams says: Between the start of December 2021 and the beginning of June 2022, the Bank of England had raised the base rate by a total of 90bps. Since then, there have been fluctuations in mortgage product availability, this month dipping by 100 products to leave 4,987 deals for would-be borrowers to choose from.
She said: This is a fall of 328 when compared to December 2021, although the level of choice in the market remains up when compared year-on-year. However, our latest data also shows that product shelf-life has fallen back to the record low of 21 days this month, as providers continue to tweak their offerings and condense their ranges in light of an ever-changing economic background, which means that some deals may not be available for long before they are withdrawn or amended.