In the past six months, we’ve seen interest rates for savings and loans go up and down. Moneyfactscompare.co.uk has reviewed the average rates for savings and mortgage rates to see how they’ve shifted over time.

Since November 2023, the average rate for a two-year fixed mortgage has dropped from 6.29% to 5.91%, and a five-year fixed mortgage has come down from 5.86% to 5.48%. However, compared to last month, these rates have risen from 5.80% and 5.39% respectively.

For a 10-year fixed mortgage, rates have increased from 5.75% in November 2023 to 5.97% now. Since the start of April 2024, they’ve gone up slightly from 5.77%.

The average standard variable rate (SVR) is at 8.18%, a small decrease from 8.19% since November 2023, and is unchanged since the beginning of April 2024.

Mortgage Market Analysis
Average Mortgage RatesDec-21May-22May-23Nov-23Apr-24May-24
Standard Variable Rate (SVR)4.40%4.78%7.37%8.19%8.18%8.18%
Two-Year Fixed Mortgage2.34%3.03%5.26%6.29%5.80%5.91%
Five-Year Fixed Mortgage2.64%3.17%4.97%5.86%5.39%5.48%
10-Year Fixed Mortgage2.97%3.21%5.00%5.75%5.77%5.97%
The data shows averages as of each month’s start date unless noted otherwise. Source: Moneyfactscompare.co.uk

Rachel Springall, a finance expert from Moneyfactscompare.co.uk, mentioned that borrowers might be upset to see an increase in fixed mortgage rates. She observed that since October 2022, the average rate for a five-year fixed mortgage has consistently stayed below the two-year fixed rate. The latter is now nearing 6%, a mark last seen in December 2023.

She explained that lenders are adjusting their fixed-rate mortgages in response to erratic swap rates, resulting in month-to-month increases. However, rates are still lower than what they were six months ago. For those who are transitioning from a fixed-rate mortgage, now is a good time to secure a good deal, especially as some lenders are retracting offers that were below 5%.

Springall also discussed the dynamic nature of the mortgage market, noting that it remains active despite the unchanged Bank of England base rate since August 2023. She highlighted that market predictions are pushing back the expectation of rate cuts due to persistent inflation.

Springall further stated that affordability remains a major hurdle for homebuyers, with interest rates being higher than anticipated and a continuous shortage of affordable housing options. This issue notably affects first-time buyers, especially those without additional support, and those looking to remortgage could face significantly larger repayments after their current deal ends. She advised that such borrowers would still find it cheaper to switch to a fixed mortgage than staying on an average SVR rate.

She added that with the average SVR now above 8%, it’s significantly higher than the average two-year fixed rate. On average, someone with an SVR of 8.18% would be paying about £290 more per month compared to someone with a typical two-year fixed rate of 5.91%. To navigate these increases, Springall recommends seeking advice from an independent broker and for current borrowers to talk to their lenders if they’re struggling with repayments.