Summary
Average mortgage rates in the UK have risen slightly for the first time since February, according to financial information service Moneyfacts. Rates for both two-year and five-year fixed mortgages are now about 5%, up by 0.02 percentage points from last month, as lenders react cautiously to economic conditions.
Key Facts
- Mortgage rates increased slightly after continuous monthly declines since February.
- The average two-year fixed mortgage rate is now 4.98%, and the five-year rate is 5.02%.
- Lenders are cautious due to volatile swap rates and uncertainty about future interest rates.
- More than 80% of mortgage customers have fixed-rate deals.
- Fixed-rate mortgages maintain the same interest rate for a set period, usually two or five years.
- The government plans to help with the cost of living, and a Budget is expected in November.
- Mortgage rates are much lower than two years ago when the average two-year deal was 6.67%.
- Financial advisers suggest borrowers seek independent advice on mortgages.
