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Latest Moneyfacts data on fixed rates

ended 07. July 2023

Moneyfacts has this morning reported that 2-year and 5-year average fixed rates have risen, leaving them both above 6%. Apparently:

  • The average 2-year fixed residential mortgage rate today is 6.54%, up from 6.52% on Thursday
  • The average 5-year fixed residential mortgage rate today is 6.04%. This is up from an average rate of 6.02% on the previous working day.
  • There are currently 4,621 residential mortgage products available, up from 4,594 yesterday.

Any thoughts, including on whether this kind of data is useful or unhelpful to consumers, send them across.

4 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
Personally i don't like the idea of average rates being published, as this can mislead the vast majority of mortgage holders who can still access rates below 6% at the moment. The figures provided are a useful industry guide, but not for borrower consumption necessarily. Discussion about rising rates is inevitable, and a worry for almost every borrower, but this kind of sensationalism is not helping the mood of both borrowers and brokers.
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Rohit Kohli
Director at The Mortgage Stop
I don't think that these are helpful other than as an indicator of market direction. Every client is different and their circumstances will dictate what type of lender and rate they can get. For example this week we have placed several cases on a rate well below the average being quoted as well as a couple on rates much higher. This is a great way to grab headlines but doesn't truly reflect the real marketplace.
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Platinum
Elliott Culley
Director at Switch Mortgage Finance
Average rates should only be used as a guide for where the market is heading. There are rates you can get which are much lower than the average, starting with a 5 for the lower LTVs. There are also other types of products mortgage customers could explore. It's rare to see much coverage given to products such as tracker or discount variable.
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Graham Cox
Director at Bridging Hub
These average rates are ok as a guide to where the market's heading, but the problem is most borrowers aren't average. Everyone's circumstances are different, and many will be able to secure much better rates than the average figures quoted.