At the start of the week Nationwide Building Society shared that interest rates will be increasing for some of its mortgages.

According to the Swindon-based building society, mortgage rates will rise by up to 0.25 percentage points from Tuesday (13 February), although some will rise by much less.

First-time buyers (FTB) and home movers will pay 4.49 per cent interest for a two-year mortgage, while those remortgaging will pay 4.54 per cent.

Nationwide told the Independent: “Swap rates, which are a key factor in mortgage pricing, have been rising and as a result, we need to increase selected rates to ensure our rates remain sustainable.”

However, the average two-year fixed mortgage rate on the market recorded its biggest month-on-month fall since December 2022 in February, according to a financial information website.

Across all deposit sizes, the average two-year fixed-rate mortgage had a rate of 5.56% at the start of February 2024, down from 5.93 per cent at the start of January.

The 0.37 percentage point fall was the biggest monthly decrease recorded by Moneyfacts since December 2022.

Five-year fixed mortgage rates edged down from 5.55 per cent to 5.18 per cent on average, comparing the start of January 2024 with the start of February this year.

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Rachel Springall, a finance expert at Moneyfacts, explained to PA: “Borrowers searching for a new mortgage deal may be delighted to know fixed mortgage rates continued their downward trend, with the average two-year fixed rate dropping by its biggest margin since December 2022.

“Those borrowers who have waited patiently in recent months to re-finance, or indeed are preparing for when their mortgage deal expires, would be wise to review rates, as lenders are closely monitoring the volatile swap rate market, which tends to influence fixed-rate pricing.

“There have been big expectations for fixed rates to fall further, and whether now is the right time to refinance will come down to an individual’s circumstances.

“Lenders are in constant review of their ranges, and it is likely rates will fluctuate in the coming weeks due to the noises surrounding future rate expectations.”

The average SVR at the start of February was 8.17% as per Moneyfacts

Ms Springall added: “The average two- and five-year fixed rates are much lower than the average SVR. Seeking advice from an independent broker is wise to work out if an individual could save a decent sum on their monthly repayments by changing their mortgage deal.

“The average two-year fixed-rate mortgage at 95 per cent loan-to-value (LTV) has dropped below 6% for the first time since May 2023 (sitting at 5.84 per cent at the start of February), much lower than six months ago, when it was just over 7 per cent.

“Product choice has also increased at this LTV bracket.”