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Derin Clark

Derin Clark

Online Reporter
Published: 09/11/2020
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Average rates on two and five year fixed mortgage deals have risen for the fourth consecutive month, resulting in the average two year rate for borrowers with a 15% deposit now over 3%.

A borrower looking to purchase a home with a 15% deposit would need a mortgage deal at an 85% loan-to-value (LTV) and the latest data due to be released in the Moneyfacts UK Mortgage Trends Treasury Report found that the average two year rate at this LTV now stands at 3.12%. This is an increase of 1.01% since July, when the average two year fixed rate at an 85% LTV was 2.11%. The average rate on a five year deal at an 85% LTV is now 3.25%, up from 2.34% in July – an increase of 0.91%.

The data found that average rates across all LTVs have risen since July. The average two year fixed rate at 80% LTV increased by 0.54% during this period, from 2.13% to 2.67%, and the average five year rate at this LTV rose by 0.58%, from 2.38% to 2.96%. Those looking to borrow at 75% LTV will have seen average two year fixed rates increase by 0.35%, rising from 1.92% in July to 2.27% in November, while the average five year fixed rate at 75% increased by 0.36%, from 2.15% to 2.51%.

Meanwhile, first-time buyers with a 10% deposit will have seen the average two year fixed deal at a 90% LTV increase by 0.86%, from 2.90% to 3.76%, and the average five year rate rise by 0.82%, from 3.16% to 3.98%.


Average mortgage rates
    March 2020 July 2020 October 2020 November 2020
90% LTV Average two year fixed rate 2.57% 2.90% 3.64% 3.76%
Average five year fixed rate 2.91% 3.16% 3.89% 3.98%
85% LTV Average two year fixed rate 2.49% 2.11% 2.93% 3.12%
Average five year fixed rate 2.81% 2.34% 3.07% 3.25%
80% LTV Average two year fixed rate 2.41% 2.13% 2.58% 2.67%
Average five year fixed rate 2.71% 2.38% 2.82% 2.96%
75% LTV Average two year fixed rate 2.29% 1.92% 2.23% 2.27%
Average five year fixed rate 2.56% 2.15% 2.47% 2.51%


As well as this, borrowers need to act quickly to secure the best mortgage deals as the average shelf life for a mortgage product is now just 28 days, which is the lowest since August 2018. “Demonstrating how fluid the mortgage market remains is the fact that the average shelf life for a mortgage product has reduced to 28 days, which is the lowest on Moneyfacts’ records since providers reacted to the Bank of England base rate increasing from 0.50% to 0.75% in August 2018,” explained Eleanor Williams, finance expert at “It is half the average shelf life we recorded of 56 days in February of this year and suggests that borrowers have a limited time to secure their product of choice.”

Borrowers have more choice in mortgage deals

There was some good news for mortgage borrowers, as the data found that there was more choice of mortgage deals during November compared to the month before. The number of products available across all LTVs increased by 145 between October and November.

Of all LTVs, the number of products available at 75% and 80% LTV saw the biggest rise between October and November, increasing by 43 and 49 respectively. Meanwhile, first-time buyers continue to face a highly challenging market as there was no change in the number of deals available at 100% and 95% LTVs and deals available at 90% LTV increased by just five. “This could be indicative of the fact that lenders are focusing their offerings towards traditionally lower-risk borrowers with a larger equity or deposit,” said Williams.


Product numbers for variable and fixed rate deals
  March 2020 July 2020 October 2020 November 2020
Total product count – all LTVs 5,222 2,728 2,259 2,404
Product count – 90% LTV 779 70 51 56
Product count – 85% LTV 664 356 329 344
Product count – 80% LTV 714 563 422 471
Product count – 75% LTV 845 655 534 577


With mortgage rates rising, borrowers looking to lock into a two or five year fixed deal should consider acting quickly to secure the lowest mortgage rates while they are still available. When looking at mortgage deals, borrowers should also keep in mind that the lowest rate may not be the best option for them and instead they should consider other factors of the deal, such as product fees and incentives.


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. 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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