Five-year average fixed mortgage rate below 6% for the first time in seven weeks

The average five-year fixed mortgage rate fell below 6% for the first time in seven weeks, according to an analysis.

Mortgage lenders are offering 5.95% on average for a five-year fixed rate deal, Moneyfacts.co.uk has found.

The average two-year fixed rate mortgage remains above 6% at 6.13%.

Mortgage rates soared amid market turmoil after the mini-budget in September.

As of October 20, the average five-year contract was 6.51% and a two-year product was 6.65%.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Borrowers who have put their home ownership plans on hold, or who have in fact given up on the idea of ​​refinancing, may now be tempted to review the latest offers.

“After the budget announcement (September 23), average two- and five-year fixed mortgage rates rose sharply, but they are moving further away from their daily peak (October 20).

“However, it should be noted that rates could fall further, but there is no clear answer as to how quickly this may be.”

Hikes in the Bank of England’s base rate pushed up borrowing costs.

Ms Springall added: “Borrowers may feel they have to wait a bit longer before committing to a new fixed rate mortgage, or even wait until next year to see how the market recovers from the downturn. recent interest rate uncertainty.”

The Nationwide Building Society has announced rate cuts for some of the mortgages it offers. The cuts, up to 0.3 percentage points, will be made tomorrow.

The Company said the new rates will include a two-tears trailing rate for people with a 15% deposit, reduced by 0.3 percentage points to 3.94%, with a fee of £999.

They also include a five-year fixed rate remortgage deal for those with a 40 per cent down payment, reduced by 0.26 percentage points to 4.93 per cent, with a fee of £999.

Henry Jordan, Director of Mortgages at the Nationwide Building Society, said: “The continued stability of the market and the downward trend in swap rates has allowed us to further reduce rates on a large number of products in our range of Mortgages.

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