Mortgage rates drop below six percent for first time in almost six months
manchestereveningnews.co.ukThe rate of a two-year fixed mortgage has now dipped below the six percent mark for the first time in almost six months. Across all deposit sizes, the average two-year fixed-rate deal that homeowners can now get was 5.99 percent on Friday (Dec 8), according to Moneyfactscompare.co.uk.
This fell from an average of 6.01 percent on Thursday. The last time the rate was lower than 6 percent was on June 16, when it was at 5.98 percent.
The peak for two-year fixed products this year was reached on July 26, when the average rate hit 6.86 percent. It comes as the Bank of England's continuous rising of interest rates this year has pushed mortgage rates up, making monthly repayments hundreds of pounds more expensive for homeowners amid the cost of living crisis. READ MORE: Three-year warning issued to millions of homeowners as 'risks heighten' READ MORE: Greater Manchester country house 'frozen in time' with features from 1700s But as the Bank has now kept the base rate at 5.25 percent since September after inflation fell, lenders have been chopping their fixed rates.
In recent weeks, a number of lenders have again begun to offer sub-5 percent two-year fixed deals James Hyde, spokesperson at Moneyfactscompare.co.uk, said: “The average two-year fixed rate has dipped below 6 percent, for the first time since mid-June this year. “Having peaked at 6.86 percent in late July, rates have been gently falling since early August due a combination of factors including falling inflation, base rate pauses, and reductions in swap rates (which lenders use to price fixed-rate mortgages). “In recent weeks, a number of lenders have again begun to offer sub-5% two-year fixed deals; with lowest rates available UK-wide sitting around 4.75 percent
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