Moneyfacts.co.uk reveals the average five-year fixed mortgage rate has dropped below 6% for the first time in seven weeks. As at the start of business yesterday, the average five-year fixed rate stood at 5.95%, meaning it now sits below the 6% threshold for the first time since 5 October 2022 (5.97%).
Since the recent peak on 20 October of 6.51%, the average five-year fixed rate has slowly declined. The research also shows how the average two-year fixed rate has changed over the past three months, with it standing at 0.18% above its five-year equivalent, at 6.13%. It has now dropped 0.52% since its peak of 6.65% on 20 October 2022. Rachel Springall, Finance Expert at Moneyfacts.co.uk, said: “Borrowers may well breathe a sigh of relief to see that fixed mortgage rates are starting to fall, but there may be much more room for improvement.
As the average five-year fixed mortgage rate falls below 6% for the first time in seven weeks, borrowers who paused their home ownership plans, or indeed parked the idea of refinancing, may now be tempted to scrutinise the latest deals on offer.”
Source: MoneyFacts 23.11.22