Moneyfacts UK Mortgage Trends Treasury Report data reveals fixed mortgage rates have fallen across the spectrum and overall product choice has grown month-on-month
- Average fixed mortgage rates across all LTV tiers on two- and five-year fixed rate deals fell for a second consecutive month.
- The overall average two- and five-year fixed rates fell between the start of September and the start of October, to 6.47% and 5.97% respectively. The average two-year fixed rate stands at 0.50% higher than the average five-year equivalent, a marginally narrower gap than the 0.51% difference last month.
- The average ‘revert to’ rate or Standard Variable Rate (SVR) continued to climb. At 8.18%, this rate is at the highest level on Moneyfacts’ electronic records (starting July 2007).
- The average two-year tracker variable mortgage rate fell month-on-month to stand at 6.17%.
- Product choice rose month-on-month to 5,495 options, the highest level of availability in over 15 years. The last time there were more deals available was March 2008 (6,192 products). There is also currently a record number of deals available at the 75% LTV tier (1,014). This continues the trend of increased stability in the market.
- The average shelf life of a mortgage product rose to 16 days. This has now increased for three consecutive months from a low of 12 days in July, which was the shortest average shelf life on Moneyfacts’ records.
| Mortgage market analysis | ||||||
| Oct-21 | Oct-22 | Apr-23 | Sep-23 | Oct-23 | ||
| Fixed and variable rate products | Total product count – all LTVs | 4,939 | 2,258 | 5,146 | 5,338 | 5,495 |
| Product count – 95% LTV | 293 | 132 | 204 | 243 | 252 | |
| Product count – 90% LTV | 610 | 295 | 684 | 632 | 648 | |
| Product count – 60% LTV | 593 | 337 | 702 | 532 | 585 | |
| All products | Shelf life (days) | 27 | 15 | 21 | 15 | 16 |
| All LTVs | Average two-year fixed rate | 2.25% | 5.43% | 5.35% | 6.70% | 6.47% |
| Average five-year fixed rate | 2.55% | 5.23% | 5.05% | 6.19% | 5.97% | |
| 95% LTV | Average two-year fixed rate | 3.32% | 5.54% | 5.89% | 6.91% | 6.74% |
| Average five-year fixed rate | 3.63% | 5.49% | 5.27% | 6.25% | 6.08% | |
| 90% LTV | Average two-year fixed rate | 2.56% | 5.33% | 5.64% | 6.66% | 6.39% |
| Average five-year fixed rate | 3.05% | 5.12% | 5.26% | 6.04% | 5.78% | |
| 60% LTV | Average two-year fixed rate | 1.43% | 5.08% | 4.95% | 6.43% | 6.16% |
| Average five-year fixed rate | 1.65% | 4.94% | 4.65% | 5.91% | 5.65% | |
| All LTVs | Standard Variable Rate (SVR) | 4.41% | 5.63% | 7.30% | 8.09% | 8.18% |
| All LTVs | Average two-year tracker rate | 2.13% | 3.77% | 5.02% | 6.25% | 6.17% |
| 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 fallen across the spectrum, signalling a positive change in the market. Overall, the average two- and five-year fixed rates have now fallen for the second month running, so borrowers could find cheaper deals to choose from. These are encouraging signs for borrowers who may be looking for a new fixed rate deal, but they still may be on the fence about locking in, hoping rates will fall further in the weeks to come. Those with a limited deposit will find the average five-year fixed rate at 90% loan-to-value has dropped below 6% for the first time since July 2023 (5.81%) and is at its lowest point since June 2023 (5.23%).
“There is good news for borrowers with a limited deposit as product choice has grown consecutively over the past three months, at 90% and 95% loan-to-value. The volume of deals in each sector has blossomed to a level not seen since before the fiscal announcement, deals at 90% LTV are the highest since May 2023 (675), and deals at 95% LTV are the highest since the start of September 2022 (274). Across the whole mortgage market, product choice (5,495) is at its highest level since March 2008 and the average shelf life rose slightly to 16 days, a sign the market is stabilising.
“One area of the mortgage market to feel a negative impact of rate rises month-on-month may well impact consumers who have or will fall off their fixed rate deal. The average Standard Variable Rate (SVR) rose to 8.18% at the start of this month, standing at a record high. This rate has risen by 3.78% since the start of December 2021 and there may be borrowers either stuck or deciding to sit on their revert rate, hoping fixed rates will fall in the weeks to come. Borrowers would be wise to seek independent advice to go over their options or speak with their lender if they are struggling to make repayments.”
