Mortgage rates have halved in the past 10 years | will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be Scamsmart.

MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Derin Clark

Derin Clark

Online Reporter
Published: 07/08/2019

Over the last decade the average two-year and five-year mortgage rates have more than halved, from 5.21% and 6.10% in 2009 to 2.49% and 2.84% respectively today.

Research by shows that fixed rate mortgages are much more competitively priced than they were since their launch 30 years ago. In fact, back in 1989 one of the lowest fixed rate mortgages was a three-year deal from National Westminster Bank charging 12.4%, while the lowest three-year fixed rate mortgage on a 60% loan-to-value (LTV) available today is 1.56% from HSBC.

Although fixed rate mortgage rates have dropped significantly since the late 1980s, house prices have risen. According to the most recent Land Registry data, the average house price hit £229,431 in May 2019, seeing it stand almost four-times higher than the £58,658 recorded in May 1989.

Rachel Springall, finance expert at, said: “Fixed rate mortgages have clearly become a firm favourite among borrowers and they continue to cement their appeal during times of economic uncertainty. Borrowers searching for peace of mind when it comes to their monthly mortgage repayments may well consider a longer-term deal and thankfully there is plenty of choice today. 

“Mortgage lenders have embraced fixed rate mortgages over the years and they continue to expand their range to accommodate different types of borrowers – for example, the recent entry of Virgin Money’s 15-year fixed rate mortgage into the market.

“Meanwhile, lenders are also extending the maximum mortgage term, as the majority of the fixed market (55%) now offer a maximum term of 40 years and almost two-fifths of the market caters for those looking for a maximum term of 35 years (38%). This will no doubt help borrowers looking to make their monthly repayments more affordable but also enable those who are retiring later in life to secure a loan.

“Overall, the fixed rate mortgage market continues to improve and adapt to cater for borrowers, but as the months ahead may be challenging for new or existing homeowners amid economic uncertainties, it will be interesting to see how lenders adapt to entice new customers and keep the market moving.”


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