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Ella Mower

Content Writer
Published: 12/01/2024
Sunny shining on wooden toy house | Compare mortgage rates

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The start of the new year sees average rates fall while product availability grows.

The mortgage market made a positive start to 2024, with average two and five-year fixed rates continuing to fall in January for the fifth consecutive month.

With the average rate for a two-year fixed mortgage charging 5.93% at the start of the month, and the average five-year deal sitting at 5.55%, these rates are at their lowest in over six months.

 

Graph showing average mortgage rates 2022 - Jan 2024 Graph showing average mortgage rates 2022 - Jan 2024
Graph showing average mortgage rates 2022 - Jan 2024 Graph showing average mortgage rates 2022 - Jan 2024
Graph showing average mortgage rates 2022 - Jan 2024 Graph showing average mortgage rates 2022 - Jan 2024

Graph: Average mortgage rates continued to fall at the start of January 2024.

 

“The consecutive reductions to the overall average two- and five-year fixed mortgage rates will be of great relief for borrowers looking to refinance this year,” said Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.

However, citing “big expectations for fixed mortgage rates to fall in the coming weeks”, Springall added that some borrowers may be waiting for the right time before changing their deal or buying a new property.

Nevertheless, those currently looking for a new mortgage have an increased number of deals to consider, as overall product availability rose month-on-month for the sixth consecutive time.

With 5,899 options to choose from at the start of January, the mortgage market continues to see its highest number of products available in over 15 years; the last time there were more deals available was in March 2008.

 

Graph showing the number of mortgage products available 2008 - Jan 2024 Graph showing the number of mortgage products available 2008 - Jan 2024
Graph showing the number of mortgage products available 2008 - Jan 2024 Graph showing the number of mortgage products available 2008 - Jan 2024
Graph showing the number of mortgage products available 2008 - Jan 2024 Graph showing the number of mortgage products available 2008 - Jan 2024

Graph: The number of mortgage products available continued to rise at the start of January 2024.

 

Sub 4% mortgages

Although average rates remain significantly above 5.00%, there are plenty of mortgages available charging below this threshold. Recent weeks have even seen a number of sub 4% deals return to the market, as lenders made cuts to their ranges.

Santander, for instance, offers most remortgage borrowers the lowest five-year fixed deal at 3.89%. Meanwhile, the majority of homemovers can find the lowest five-year fixed rate from Virgin Money, which offers a mortgage charging 3.92%.

However, if you’re looking to borrow a minimum of £750,000, The Co-operative Bank and The Co-operative Bank for Intermediaries have five-year fixed deals available that come with lower rates.

Other prominent high street brands such as HSBC, first direct and Yorkshire Building Society also offer mortgages charging below 4%. More information on these deals is available in our charts.

 

Compare best mortgage rates

Whether you’re a first-time buyer, moving home or looking to remortgage, you can use our regularly updated charts to compare mortgage deals from across the market.

Otherwise, for help navigating the mortgage market, consider speaking with a broker.

 

Speak to an award-winning mortgage broker today

 

MAB is the preferred mortgage broker of MoneyfactsCompare

 

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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.