Fixed mortgage rates lowered across the spectrum: Moneyfacts

by Aaron Strutt

Oct 10 2023

Data from the latest Moneyfacts UK Mortgage Trends Treasury Report shows fixed mortgage rates have fallen across the spectrum, and overall product choice has grown month-on-month.

Moneyfacts says average fixed mortgage rates across all deposit 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. 

Aaron Strutt, product director at Trinity Financial, says: "The most competitively priced fixed rates are now priced under 5% for borrowers with larger deposits. Nationwide and TSB have just announced rate changes of up to 0.45% while Virgin Money has also launched seven-day special mortgages."

Moneyfacts highlights 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).

Aaron adds: "It is important to take action up to six months before your mortgage deal ends and understand the options open to you to avoid your lender's standard variable rate. Many homeowners are unaware that it can be a simple process to switch rates with their bank or building society." 

Moneyfacts says the average two-year tracker variable mortgage rate fell month-on-month to stand at 6.17%. 

Aaron adds: "Some of the larger banks and building societies are offering tracker rate mortgages priced around 0.2% over the Bank of England base rate."

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.

Aaron adds: "It is good news there are more rates to choose from as product numbers have fluctuated over the last few years following the pandemic and mini-budget."

Rachel Springall, Finance Expert at Moneyfacts, said: “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 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. There may be borrowers either stuck or deciding to sit on their revert rate, hoping fixed rates will fall in the coming weeks. 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.”

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change.

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