Guidance from Simpson Financial Services

The run of consistently falling fixed mortgage rates has officially come to an end, with new data revealing a small but significant increase in October, the first monthly rise in eight months.

For homeowners and prospective buyers in the Leamington Spa area, understanding this shift is key to making informed decisions.

According to the latest Moneyfacts UK Mortgage Trends Report, the average two-year and five-year fixed-rate mortgages both saw an increase of just 0.02% over the month. This brings the average two-year fix to 4.98% and the average five-year fix to 5.02%.

While the increase is small, it marks an abrupt halt to a steady downward trend that had been in place since February. Moneyfacts finance expert, Rachel Springall, noted that volatile swap rates and a cautionary approach among lenders are likely the reasons behind this change.

Simpson Financial Services Expert View: What This Means for You

"The rates rose overall last month by 0.02%, which is technically a rise but pretty inconsequential. In reality, the lenders drop and raise their fixed rates all the time. It seems that on this occasion this has contributed to an overall rise of 0.02%. It is still the consensus that the Bank of England will reduce the base rate slightly more over the next couple of years and that although a very slight rise has been reported, competitive fixed rates are still readily available" said Chris Le Marquand, Independent Mortgage Adviser at Simpson Financial Services.

The Wider Context: Still Better Than Last Year

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Despite the rise, the market is still offering better rates than those seen a year ago. In October 2024, the average two-year fixed rate was significantly higher at 5.40%, and the five-year average was 5.07%.

The data also offers a positive sign for buyers, with the average shelf-life of a mortgage product increasing to 22 days in October. This suggests that the frantic pace of deals being pulled instantly may be easing, giving local buyers and those looking to remortgage a slightly longer window to secure an offer. Furthermore, product availability for those with smaller deposits (5% or 10% equity) remains at a 17-year high, meaning choice is not an issue.

Simpson Financial Services Advice: Don't Wait to Plan

"If your fixed rate is going to end soon or you're ready to move, try not to worry about the change – but also don't wait to see whether downward trends return or not. We can secure rates for you to protect from any potential further increases, but most importantly, we can find products most suited to your individual needs" added Chris Le Marquand, Independent Mortgage Adviser at Simpson Financial Services.

If you are concerned about changing rates or want tailored advice on what this market shift means for your mortgage application or renewal, the trusted local experts at Simpson Financial Services can provide the guidance you need.

Book a free consultation here or call today on 0800 6342 111 to secure your rate…

Please note, your home may be repossessed if you do not keep up repayments on your mortgage.

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