Overview

• Average two- and five-year fixed rates rose 0.02 percentage points in October to 4.98% and 5.02%, the first monthly increase since February, Moneyfacts reported.
• Analysts cite volatile swap markets, sticky inflation and pre-Budget caution from lenders as the reasons for the halt to consecutive monthly declines.
• The average shelf-life of mortgage products lengthened to 22 days in October from 17 in September as lenders made mixed pricing moves.
• Market-leading deals have nudged higher, with two-year fixes for 85% LTV buyers rising from sub-4% offers last month to about 4.05% at Halifax and 4.2% on a five-year fix at Yorkshire Building Society.
• Experts describe the shift as a modest pause that could cool housing activity and deter some first-time buyers, even though typical rates remain far below October 2023 levels.