Fixed rates earlier declined to lower levels and have risen in the six months since February, but remain substantially below where they sat in August 2023 when the base rate first increased to 5.25%
The average two-year fixed rate has dropped by 108 bps from 6.85 to 5.77% over the past year since the Bank of England base rate has remained steady at 5.25%.
Analysis from Moneyfacts also shows the average five-year fixed rate has declined by 99 basis points from 6.37% to 5.38% over the same period.
Ten-year fixed rates have risen by 4 basis points from 5.89% to 5.93%.
Fixed rates earlier declined to lower levels and have risen in the six months since February, but remain substantially below where they sat in August 2023 when the base rate first increased to 5.25%.
But average standard variable rates (SVRs) have risen over the past year from 7.85% to 8.16%.
Moneyfactscompare.co.uk personal finance expert Rachel Springall says: A year has now gone by since the BoE last raised the base rate, but other influences have been at play to impact the mortgage market.
Fixed mortgage rates have been dropping at a steady pace, with lenders feeling more encouraged to reprice their deals due to lower swap rates.
Consequently, the average rates on a two and five-year fixed rate mortgage have both declined month on month for the first time in six months, she said.
But she adds: Borrowers coming off a deal this year must acknowledge that they will need to set aside more of their income to cover higher repayments.
On average, a two-year fixed deal was priced at 3.95% in August 2022, and back in August 2019 a five-year fixed was 2.84%, she said. However, it is still cheaper to lock into a fixed mortgage than sit on a revert rate.
