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Mortgage rates below 5% for first time since Truss budget

Mortgage rates below 5% for first time since Truss budget

Summary

The average two-year mortgage rate in the UK has dropped below 5% for the first time since September 2022. This change follows several interest rate cuts by the Bank of England, with lenders becoming more competitive.

Key Facts

  • The average two-year mortgage rate is now 4.99%.
  • This is the first time the rate has been below 5% since September 2022.
  • The decrease in rates follows cuts by the Bank of England.
  • Five interest rate cuts have occurred since last August.
  • There was a split vote among Bank of England policymakers about future rate cuts.
  • Mortgage competition among lenders has increased.
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