Average fixed mortgage rates have risen for the first time in eight months, according to Moneyfacts UK Mortgage Trends Treasury Report data, signalling a pause in the downward trend that has characterised most of 2025.

The average two-year fixed rate increased by 0.02% to 4.98%, while the average five-year fixed rate climbed by the same margin to 5.02%. The last time both measures rose month-on-month was in February.

Over the past year, shorter-term fixes have seen sharper falls. At the start of October 2024, the typical two-year fix stood at 5.40%, meaning the current rate is 0.42% lower. The average five-year deal has edged down more modestly from 5.07% to 5.02%.

Despite this month’s increase, average mortgage rates remain significantly below the levels seen in 2023, when the five-year rate stood at 6.21%.

SHELF LIFE

Lenders’ mixed pricing strategies led to a lengthening in the average shelf life of products, which rose from 17 to 22 days — the first time it has moved above 20 days since April. Product choice dipped slightly, falling below 7,000, to 6,998 options.

The average two-year tracker rate rose to 4.67%, while the average standard variable rate (SVR) fell to 7.27%, well below the peak of 8.19% recorded in late 2023.

One area of growth came at the higher loan-to-value tiers. The number of products available at 90% and 95% LTV increased to 1,362, the highest total in 17 years.

Rachel Springall, finance spokesperson at Moneyfacts, said borrowers would be disappointed to see rates rise after months of reductions. “Volatile swap rates and a cautionary approach among lenders have led to an abrupt halt in consecutive monthly average rate falls,” she said.

“The shift in sentiment towards pre-pricing and product churn during September led to a rise in the average shelf-life of a mortgage to 22 days. This increase is likely a result of a calming mortgage market, so it will be interesting to see if activity picks up should lenders need to hit any year-end targets.”

Springall added that there was limited scope for lenders to make significant changes in the near term. “Inflation is expected to peak at 4%, double the desired 2% target, so any imminent base rate cuts by the Bank of England seem unlikely.

“However, even with the three base rate cuts since the start of 2025, fixed mortgage rates can move up regardless, such as in reaction to volatile swap rates,” she said.

BENIGN ENVIRONMENT

She pointed out that borrowers were still benefiting from a more benign environment than last year. “Those who locked into a two-year fixed rate deal back in October 2023 would have been paying 6.47% on average, compared to 4.98% now — a difference of £225 per month on a £250,000 mortgage over 25 years.”

Springall concluded that the slight rise in fixed rates, coupled with subdued market sentiment, could undermine the government’s efforts to stimulate growth through lending. “Even with a slight dip in product choice, deals for borrowers with 5% or 10% deposits stand at a 17-year high,” she said.

“The relaxation of loan-to-income rules is a positive step for affordability, but first-time buyers are still waiting for more affordable housing to be built.”