Fixed rate mortgages have been increasing in price throughout January as lenders have been raising interest upwards on many products.

This week Virgin Money was among the lenders which announced rate hikes – but other main high street providers have inflated prices in the last two weeks.

Despite this, borrowers should not be put off fixing into a new deal. For those whose current mortgage deal is due to expire, the alternative – defaulting to your lender’s standard variable rate (SVR) – is likely to be more expensive.

What’s more some lenders – Coventry Building Society is a case in point – have actually lowered their rates this week. Indeed, the society’s intermediary arm, which offers its mortgages via brokers, has cut rates by up to 0.10%.

This highlights the value of speaking to a broker or adviser who can sometimes be party to deals which are not within grasp of borrowers searching directly for a mortgage.

By how much have mortgage rates increased in January 2025?

Over the month mortgage rates have increased slightly, having come down in price a little at the start of the month.

Today the typical two-year fixed rate is 5.52% – this compares to 5.47% two weeks’ ago on 8 January, according to data from Moneyfacts.

Meanwhile, a five-year fixed rate is currently averaging 5.30%, an increase on 5.24% recorded on 8 January.

According to Moneyfacts the average SVR is currently 7.81%. This, as mentioned previously, is the rate onto which you will default if you don’t take out a new deal when your current mortgage ends.

For those considering tracker mortgages, Moneyfacts said the average rate today is 5.47%.

With a question mark currently hovering over whether the Bank of England will cut interest rates in February, there are no guarantees these tracker rates will fall any time soon.

But as most tracker deals do not have early repayment charges, they could be a flexible option for borrowers who are in a quandary about whether they want to lock into a fixed rate. Speak to a mortgage adviser, however, to find out if this will be suitable for you.