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The average rate for a two-year fixed mortgage fell below 6% today for the first time since mid-June of this year – dropping to 5.99% according to Moneyfacts’ data. This is some months behind the average five-year fixed deal, which dropped below 6.00% in September and currently sits at 5.60%.
Mortgage rates surged in the wake of Liz Truss’s bungled mini-Budget last year, and they had already been on the rise after a wave of rate hikes by the Bank of England to cool inflation
Average fixes eased this week, as lenders continued to battle for market share while the Bank of England base rate remained stable. The average rate for two-year fixes fell by 4 basis points to 6.04%, while the average rate for three-year fixes lifted by a single basis point to 5.83%, according to Moneyfacts data.
Lloyds, Barclays, NatWest, HSBC and Santander are still offering poor paying easy-access rates, despite the best buy now being 5.22% and base rate being 5.25%.
Major lenders have announced new mortgage rate cuts in the UK, widening the choice for borrowers searching for deals under the 5% mark. HSBC UK Bank PLC's First Direct announced rate cuts of up to...