Summary
Average mortgage rates in the UK have dropped below 5% for both five-year and two-year fixed rate deals. This marks the first decrease to this level since May 2023, offering some relief to borrowers.
Key Facts
- The average five-year fixed mortgage rate is now at 4.99%, down from 5%.
- The average two-year fixed mortgage rate has dropped to 4.97%.
- This decline is the first time rates have been below 5% since former Prime Minister Liz Truss's mini-budget in September 2022.
- Moneyfacts reports that lenders are competing more aggressively, offering more options to borrowers.
- There are now 7,031 residential mortgage products available, up from 6,992.
- 900,000 fixed rate mortgages are due to expire in the second half of 2025.
- Mortgage rates increased significantly after a fiscal event in 2022, reaching the highest level since the 2008 financial crisis.
