The average fixed mortgage interest of two years has fallen to the lowest point since the beginning of September 2022, before the Truss’mini budget ‘.
According to the latest MoneyFacts UK MortGage Trends Treasury Report, which shows that the average fixed rates of two and five years in September 2022 (4.24%) and November 2024 (5.09%) were lower.
On a monthly basis, the average mortgage interest rate on the total fixed rates of two and five years fell by 0.14% and 0.08% to 5.18% and 5.10% respectively. The fixed rate of two years noted its largest monthly decrease since the beginning of October 2024 (0.16%).
At the beginning of May last year, the average fixed rate of five years was 5.48%; Compared to the start of this month, the rate is 0.38% lower at 5.10%. However, the average fixed rate of two years has fallen by 0.73% for the same period, a decrease from 5.91% to 5.18%.
The MoneyFacts report also showed that the availability of product choice grew further and the average shelf life of a deal decreased. The average shelf life of a mortgage product fell to 19 days, from 21 days a month ago.
Product choice General Rose Month-on-Month, up to 6,993 options, which has risen year-on-year (6,565-May 2024) and the highest number since October 2007 (7,421).
The average two-year-old tracker-variable mortgage interest rate fell to 5.16%.
The average ‘go back to’ speed or standard variable speed (SVR) fell to 7.58%. For comparison: the highest registered was 8.19% in November and December 2023.
Responding to the latest Data MoneyFacts Finance expert Rachel Springall said that the momentum of cutting the rate in April was widespread, where lenders hurried to adjust their mortgage ranges, which led to a decrease in the average shelf life of a mortgage up to 19 days, compared to 21 per month earlier.
“Falling exchange rates have been the driving force behind mortgage reductions with a fixed rate and the movement has also attracted a shortening gap between the fixed rate prices in the short and longer term. The inversion of the rates could soon end, with the rate gap between the average two-year and five-year fixed mortgage now only 0.08%.
She added: “Since the beginning of October 2022, the average fixed rate of two years is higher than the five -year percentage. Borrowers who are concerned about the volatility of interest rate in the coming months can still prefer a fixed speed agreement of five years to protect their rate longer, in particular because the total average rate is six months at the low point.”
Springall insisted that there was more positive news for borrowers with smaller deposits, with the average fixed mortgage of two years at 90% loan-to-value fell to the lowest point since October 2022 (5.33%) and the product choice in general at 90% and 95% Loing-to-value remnants).
She concluded: “Product choice continues to flower, and this can create a positive prospect among borrowers. Millions of consumers will come up with a low fixed rate mortgages in the coming year and they need both support and appetite for new companies of credit lends to secure new deals. First buyers remain an integral part of the mortgage, so an integral part of the mortgaget, so an integral part of the mortgaget, so an integral part of the mortgaget, so an integral part of the mortgagete of the mortgaget, so an integrated part of the mortgaget, so an integral part of the mortgagete of the mortgaget, so an integral part of the mortartalt of the mortgagete of the mortgagete. A big difference to find a big difference to find a big difference.