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Are mortgage rates changing more quickly in June 2024?

A recent report from Moneyfacts which is the UK Mortgage Trends Treasury Report, suggests that mortgage rates are far less stable this month. The average shelf-life of a mortgage deal has dropped from 28 days last month to nearly half that at 15 days this month.

The drop in mortgage deal shelf-lives is a direct result of the recent stabilisation of the Bank of England Base Rate (BBR) at 5.25%, which was previously due to drop. Mortgage lenders were expecting mortgage rates to drop had held rates for longer than before due to a brighter outlook.

The report also showed that the average 2 year fixed rate had increased to 5.93% and the average 5 year fixed rate was now up to 5.5%. Mortgage rates are still lower than they were in December 2023 and the gap between 2 and 5 year fixed rates is the biggest since October 2023 (currently 0.43%).

Lenders are still holding their Standard Variable Rates (SVR) at higher than expected rates of around 8.18%, which is only just below the highest recorded levels of 8.19% in November 2023. In slightly more positive news, the average 2 year tracker rate fell to 5.94%.

Our mortgage experts predict that mortgage lender Standard Variable Rates will remain it these high levels until after the next rate review in June or potentially July, before they start to drop slightly.

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Another potential positive sign at the moment is the fact that there are more mortgage products on the market than there have been for a very long time. Currently, the number of mortgage deals that are available to borrowers is 6,629 which is the highest since February 2008.

The issue with this is the fact that these mortgage deals are changing more frequently than they have been. As we explained earlier in this article, the average shelf-life of a mortgage deal is now only 15 days which is the shortest since March 2024.

The current mortgage advice from our experts is to review your mortgage deal and especially if you’re on a Standard Variable Rate or going to one in the next 6 months. It is unlikely that mortgage rates will reduce significantly in the next 12 months and potentially could still increase with an election coming soon.

If you need to speak to one of our team of friendly mortgage experts then you can call 0800 009 6559 or CLICK HERE for more help.

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