Two-year fixed-rate mortgages within a whisker of 6%
Mark Harris, of mortgage broker SPF Private Clients, says: “While mortgage rates are on an upwards trend, borrowers should not panic."
The average five-year fixed-rate mortgage hit 6% earlier this month, and two-year deals are closing in on the same threshold.
The average rate on a new five-year fixed-rate mortgage deal reached 6% for the first time in almost three years earlier this month.
Now the average two-year rate looks just days away from reaching the same threshold.
Borrowing rates
The average two-year fixed-mortgage stands at 5.97%, up from 5.68% around a month ago, according to the latest figures by Moneyfacts.
The last time the average two-year was 6% or above was on 7th December 2023 – when it was at 6.01%.
Meanwhile, the average five-year fixed has eased back to 5.99% up from 5.73% a month ago.
Moneyfacts explains that borrowers currently have around 8,560 residential mortgage products to choose from, depending on their individual circumstances.
Buy-to-let rates
Meanwhile, the average two-year buy-to-let residential mortgage rate is 5.63%, and the average five-year buy-to-let residential mortgage rate today is 6.01%.
There are currently 5,192 buy-to-let mortgage products available to landlords.
While mortgage rates are on an upwards trend, borrowers should not panic.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “While mortgage rates are on an upwards trend, borrowers should not panic.
“The Moneyfacts average fixed rate figure includes almost every deal under the sun. There are still plenty of two-year deals well below 6% and borrowers shouldn’t be put off from asking or looking around for a better deal.
“Advice from a whole-of-market mortgage broker is more important than ever. With Swap rates, which underpin the pricing of fixed-rate mortgages, proving volatile, a broker should be able to give borrowers a steer as to which product to opt for and help them reserve a rate several months before they need it.
“This gives some protection from rate fluctuations; if rates rise by the time the borrower comes to take out the mortgage, they will be glad they fixed when they did. However, if rates have fallen, they should be able to move onto a cheaper product at that time.”
