Leeds Building Society and Halifax are among some of the lenders to make significant cuts to their rates at the start of 2024, with the latter lowering select rates by up to 0.92 per cent.
According to the latest Moneyfacts figures, the average two-year fixed residential mortgage rate at the start of 2024 stands at 5.93 per cent.
This is a fall from an average rate of 5.94 per cent on the previous working day but an increase from 5.79 per cent this time last year.
Meanwhile, the average five-year fixed residential mortgage rate is pegged at 5.54 per cent.
This is a reduction from an average rate of 5.56 per cent on the most recent working day and compares to 5.63 per cent at the beginning of 2023.
Product choice widening
The report continued that there were currently 5,909 residential mortgage products available. This is an increase from 5,899 products on the previous working day and 3,643 at the start of last year.
On the buy-to-let side, the average two-year buy-to-let residential mortgage rate today is 5.95 per cent. This is the same as the previous working day, but a fall from 6.29 per cent at the start of 2023.
The average five-year buy-to-let residential mortgage rate is priced at 5.91 per cent. This is also unchanged from the previous working day but down from 6.25 per cent at the beginning of last year.
There are currently 3,114 buy-to-let mortgage products available, down from 3,116 products on the previous working day but a rebound from 1,906 at the start of last year.
The average two-year tracker rate is 6.15 per cent. This is unchanged from the previous working day but up from 4.48 per cent last year.
The average standard variable rate as of 1 January 2024 is 8.18 per cent, an increase from 6.64 per cent at the same time last year.
Moneyfacts figures showed that fixed rate mortgages have more than doubled since 2021 when the Bank of England began increasing its interest rates, but added that in December the average two and five-year fixed rates fell to their lowest level in six months.
Mortgage pricing is dependent on a number of factors including inflation, base rate and swap rates.
