Average fixed mortgage rates in the UK on both two and five-year terms have registered a rise in October for the first time in eight months.

According to figures released by Moneyfacts, average rates on two and five-year fixes rates both climbed by 0.02%, to 4.98% and 5.02%, respectively. The last month-on-month rate rise was recorded at the start of February.

Moneyfacts also reported that the average shelf-life of a mortgage product has also seen an increase, to 22 days, although overall product choice across the market has dipped slightly below 7,000 options.

At the low deposit end of the bracket, however, the combination in availability of deals at both 95% and 90% loan-to-value rose to 1,362 options at the start of October. This remains the highest count in 17 years, when there were 1,532 in March 2008.

Finance expert at Moneyfacts, Rachel Springall, said the increase in rates was likely a result of a “calming mortgage market”, and added that it would be interesting to see if activity picks up should lenders need to hit any year-end targets.

“There may be little margin of rate movement from lenders in the coming weeks, prolonging the subdued sentiment,” Springall commented. “Inflation is expected to peak at 4%, which would then be 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. It is not all doom and gloom for borrowers, as the mortgage market has shown how far it has improved over recent years.

“Borrowers who locked into a two-year fixed rate deal back in October 2023 would have been paying 6.47% in interest on average, compared to 4.98% now. That is a difference of £225 per month in repayments on a £250,000 mortgage over 25 years.”

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