Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

July Mortgage Rate Rises Reverse June Cuts, Says Moneyfacts

Mortgage rates increased in July, completely reversing the average rate reductions recorded in June, according to Moneyfacts’ latest monthly analysis. The average mortgage rate rose by 12 basis points, from 5.47% in July to 5.59% at the start of August.

Moneyfacts reports that this increase followed higher swap rates, which were triggered by renewed conflict in the Middle East. The July rise mirrored the 12-basis-point fall seen in June, when the average rate dropped from 5.59% to 5.47%.

Fixed mortgage rates also increased month-on-month in July for the first time since April. The average two-year fixed rate rose by 11 basis points to 5.63%, while the average five-year fixed rate increased by 14 basis points to 5.66%.

Lenders frequently repriced their mortgage products in July, resulting in the average shelf-life of a deal dropping to 11 days, down from 14 days in June. This is the shortest average shelf-life recorded since April.

Despite the rate increases, mortgage product choice expanded for the fourth consecutive month. The number of available mortgage deals rose by 180 to reach 7,357 in July.

For UK letting agents and inventory clerks, these changes may impact landlord and tenant decisions, as mortgage costs and product availability continue to fluctuate.