According to Moneyfacts, the average two-year fixed rate has settled at 6.04 per cent, whereas a five-year fix is slightly lower, sitting at 5.65 per cent. The 10-year fix deal stands at 5.96 per cent, hewing close to the historical average.
Product availability is also widening across the mortgage market.
In fact, growth has been almost meteoric in some cases.
Two-year fixed rates have surged from 183 products in October last year to 1,053 in the current moment.
As for five-year fixed rates, the total number of products shot up from 375 to 1,137 over the year.
Buy-to-let is also experiencing a bit of a resurgence, with more than 2,900 options on the market right now.
With the guidance of a professional adviser, clients are in a better position than ever to take full advantage of a diverse and growing product range.
In a time where many aspiring first-time buyers and existing homeowners may still feel wary of entering the property market – many will still remember the turbulent months after the "mini"-Budget – the variety and sheer range of affordable deals will come as a welcome reassurance.
Of course, some clients could still hesitate, and so advisers may want to reflect on historical interest rates to ensure they can accurately explain the recent uptick in rates when speaking to customers.
Since 2008, interest rates kept under 6 per cent, with the base rate plummeting to its lowest level in 300 years.
Many buyers became accustomed to these historically low rates, but in truth, these times were never meant to last.
In a way, the cost of living crisis and surging inflation was the catalyst for an inevitable correction in interest rates, albeit one that arrived much sooner than expected.
As such, advisers should consider taking care to explain that many market forecasters do not expect rates to revert to those historical lows.
So, how can advisers make a success out of this new rate environment?
Work on your business as well as within it
The landscape of increased rates may be here to stay, and so it will remain a major consideration for advisers to adjust their business strategies to remain successful.
By getting ahead of the game with their 2024 business pipeline, considering if and where they need to retrain and up-skill, and evaluating their use of mortgage technology, brokers can ensure they are best equipped to advise their clients in an uncertain economic environment.
Firstly, now is the time to start building a business pipeline for 2024.
We are entering a new era for the market, and affordability issues are leaving many prospective buyers sitting tight as they save for a deposit or wait for mortgage rates to fall.
