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or five-year fixed mortgage would be wise to act quickly to grab a competitive deal, particularly as some lenders have withdrawn deals priced below 5%."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."

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