The average rate on two and five-year fixed mortgage deals increased to 5.80% and 5.39% respectively between March and April, new figures from Moneyfacts have shown.

It is a more modest compared to the previous month although rates remain lower compared to their levels in January.

Moneyfacts also reported that the average standard variable rate (SVR) remained at 8.18%, just shy of the highest recorded (8.19%) during November and December last year. The average two-year tracker variable mortgage fell to 6.14%.

Overall product choice across the mortgage market increased month-on-month, to 6,307 options, its highest level since February 2008 (6,760).

Latest figures also showed the availability of deals at the 90% loan-to-value (LTV) tier increased for a second consecutive month (774) now at its highest point in over four years, when there were 779 –in March 2020. The number of deals at 95% LTV climbed for a fourth consecutive month to 335 and now stands at its highest count in almost two years, since June 2022 when there 347.

Finance expert at Moneyfacts, Rachel Springall, commented: “Fixed mortgage rates have continued on an upward trajectory, but the rises to the overall average two- and five-year fixed mortgage rates were much more modest. The volatility surrounding the shelf-life of mortgage products also stabilised.

“These are encouraging signs for borrowers concerned about rising interest rates and the short window of opportunity to secure a new deal.”

Springall added: “Mortgage product availability continues to thrive, with the overall choice of residential products reaching its highest point in over 16 years. Deeper analysis shows that the number of deals available at higher LTV ratios rose.

“At 90% LTV, the number of deals increased for a consecutive month, as did deals at 95% LTV. There are now 1,109 deals at these ratios combined, positive news for borrowers with a limited deposit or equity.

“The growth in choice is good news for first-time buyers, who may be struggling to find an affordable property. Those with limited deposits will find the cost to borrow at higher loan-to-values across the two and five-year fixed rates rose month-on-month, with the average two-year fixed rates at 90% and 95% breaching 6%.”

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