The Rightmove weekly mortgage tracker found that the average two-year fixed rate was now 5.38%, up from 5.29% last week. The average five-year fixed rate rose from 4.89% to 4.97%.
These increases come as several lenders have been raising mortgage rates in recent weeks.
Average rates are also higher than they were a year ago, with the average two-year fixed rate coming to 4.78% and the average five-year fixed rate at 4.48% in 2023.
At 60% loan to value (LTV), the average two-year fixed rate was 4.88% as of 1 May, while the average five-year fixed rate was 4.5%. This compared to respective pricing of 4.74% and 4.36% last week.
Less movement at higher LTVs
At 75% LTV, the average rates were 5.22% and 4.84% respectively, up from last week’s corresponding rates of 5.12% and 4.76%.
Meanwhile, the average two-year fixed rate at 85% LTV was at 5.36% on 1 May, and the average five-year fixed rate was 4.9%. This was up from 5.26% and 4.82% respectively during the last week of April.
At 90% LTV, the average two-year fixed rate rose from 5.54% last week to 5.6% this week, while the average five-year fixed rate went up from 5.08% to 5.13%.
The average two-year fixed rate at 95% LTV fell from 6.02% to 6% week-on-week, as the average five-year fixed rate saw a small rise from 5.55% to 5.56%.
According to Rightmove, the average monthly mortgage payment on a first-time buyer-type property worth £227,110 on a five-year fixed at 85% LTV would be £1,117 on a 25-year term. This compared to a monthly mortgage payment of £1,056 a year ago.
Base rate decision to ‘set tone’ for mortgages
Matt Smith, mortgage expert at Rightmove, said: “Next week’s Bank of England meeting will be quite key for setting the tone for mortgage rates leading into summer. An uneasy few weeks for the world economy has meant that there is still a lot of uncertainty around when we might see the first interest rate cut – and both have contributed to an uptick in average mortgage rates.
“Despite the rises, it doesn’t appear that we’re seeing the same kind of spike in rates as we did at this time last year. Whilst rates have risen, the actual monetary impact on average monthly payments is quite limited so far, which is reflected in homemover activity, which we’ve seen continue on its same positive trajectory in a busy spring market so far.”
