Mixed results across savings and mortgage rates since November

Interest rates for savers and borrowers have shown mixed signs with rises and falls over the past six months, Moneyfacts has found.

Since November 2023, the mortgage market has seen the average two-year fixed rate drop from 6.29% to 5.91%, and the average five-year fix has dropped from 5.86% to 5.48%.

However, month-on-month, these products have increased from 5.80% and 5.39% respectively to 5.91% and 5.48%.

Furthermore, the average 10-year fixed rate mortgage has increased from 5.75% to 5.97% since November 2023, jumping from 5.77% to 5.97% between April and May.

Finance expert at Moneyfacts, Rachel Springall, said: "Borrowers may be disappointed to see fixed mortgage rates are on the rise. Lenders have been busy reviewing their fixed rate pricing in response to volatile swap rates, seeing month-on-month rises. However, fixed rates are lower than they were six months ago, so consumers who are now coming off a two- or five-year fixed mortgage would be wise to act quickly to grab a competitive deal, particularly as some lenders have withdrawn deals priced below 5%."

For savings products, the comparison site found that since November 2023, the average easy access savings rate has fallen from 3.19% to 3.11%, while the average easy access ISA has risen from 3.29% to 3.33%.

Although the easy access rate remains unchanged month-on-month, the average easy access ISA rate fell from 3.38% in the same period.

On a notice account, the average rate has fallen marginally from 4.31% to 4.27% in the six months to May 2024, with the average rate on a notice ISA increasing from 4.12% to 4.17%.

Springall added: "Savers will find variable rates have remained rather robust over the past six months, but there have been cuts made to easy access accounts. They remain a firm favourite with savers, and there is hope that the market will stay resilient over the next few weeks, as expectations of an imminent base rate cut have waned."



Share Story:

Recent Stories


Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.