GREAT NEWS!!! Fixed mortgage rates fall across the spectrum
Fixed mortgage rates have dropped across the spectrum, which is positive news for borrowers following a turbulent year.
Fixed mortgage rates have dropped across the spectrum, which is positive news for borrowers following a turbulent year.
According to Moneyfacts data, the overall average two- and five-year fixed rates have dropped for the second consecutive month to 6.47% and 5.97% respectively.
The average two-year fixed rate stands at 0.5% higher than the average five-year equivalent, a marginally narrower gap than the 0.51% last month.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Fixed mortgage rates have fallen across the spectrum, signalling a positive change in the market. Overall, the average two and five-year fixed rates have now fallen for the second month running, so borrowers could find cheaper deals to choose from.
“These are encouraging signs for borrowers who may be looking for a new fixed rate deal, but they still may be on the fence about locking in, hoping rates will fall further in the weeks to come.”
Springall said those with a limited deposit will find the average five-year fixed rate at 90% loan-to-value has fallen to 5.81% – the lowest point since June 2023 (5.23%).
Product choice has also increased over the past three months at 90% to 95% (LTV), giving borrowers more choice.
Separate research by Octane Capital shows that homebuyers are finally enjoying an increased level of mortgage affordability, with the average monthly repayment for those buying in September coming in £64 less per month compared to July of this year.
It says the average cost of a 75% loan-to-value five-year fixed rate dropped to 5.3% in September, down from 5.79% in July.
Nathan Emerson, CEO at Propertymark, commented: “Our member agents have reported continued strength in the market despite difficult financial hurdles for homebuyers.
“A drop in house price growth has enabled buyers to negotiate on the final sale price and in turn, combat rising interest rates. Therefore, it is positive to see that given the Bank of England’s latest announcement holding rates, this has immediately improved affordability.
“We hope to see inflation continue to steady and for further drops in interest rates and in turn, mortgage payments to get buyers back to more sustainable levels.”