The lowest average mortgage rates have been relegated to the history books, with this time last year proving the low point for two-, three- and five-year fixed rates, said Moneyfacts.

The financial information provider tracks average mortgage rates, which have risen since last October, not least because of two increases in the Bank of England Base Rate since then.

Historic lows

In October 2017 these were the lowest average fixed rates on record, according to Moneyfacts:
Two-year fix – 2.21%
Three-year fix – 2.49%
Five-year fix – 2.76%

Now, in October 2018 all three average rates have seen a gradual rise, to currently stand at:
Two-year fix – 2.49%
Three-year fix – 2.72%
Five-year fix – 2.91%

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Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “October 2017 will be known not only as the month of the lowest fixed mortgage rates on record, but also as the turning point in the market. This is because just one month later, mortgage rates were on the rise, as was the Bank of England Base Rate for the first time since July 2007.”

Moneyfacts worked out that average borrowers opting for a two-year fixed rate mortgage today would be £27.93 per month or £335.16 per year worse off compared to those who were lucky enough to lock into a fixed deal a year ago, based on a £200,000 mortgage over a 25-year term.

Nelson continued: “It is unlikely that the record low levels seen in October 2017 will return anytime soon. With multiple Base Rate rises predicted for the foreseeable future, it is likely rates will only get higher, so borrowers looking for a fixed deal should act fast avoid disappointment.”