Mortgage rates now below 6% for the first time in 2 months

The data shows that the average two and five-year fixed-rate mortgages now have an interest rate of less than 6% for the first time in two months.

It seems that lenders are slowly making reductions to their fixed pricing to adjust their positions, and in doing so, the average two and five-year fixed mortgage rates now sit below 6%, said Rachel Springall, from Moneyfacts.

In the weeks to come rates could fall further, especially if mortgage lenders have targets to meet as we approach the end of 2022.

As the mortgage market remains volatile, it is important for borrowers to seek independent advice to consider the deals on offer, or whether they need to be a little patient in hopes that rates will fall further. The interest rate is set during the term of the deal, and fixed-rate mortgage deals have a fixed interest rate. Most of the deals are available for two or five years, but longer deals are available. Variable or Tracker rate mortgages can change at any time, usually in response to decisions made by the Bank of England'sBank of England's Monetary Policy Committee on the benchmark Bank rate.

The rates are much higher than the norm of the last decade or so.

Rates on new fixed-rate deals have climbed as the Bank put up interest rates to fight inflation, but they went up after the mini-budget.

If you take a new mortgage, you're likely to pay a higher rate than your previous deal. The average two-year deal stood at 2.34% at the beginning of December last year, ahead of a series of base rate increases by the Bank.

The number of deals available dropped sharply after the mini-budget. It has recovered mainly but it is still much lower than it was last year, with 3,705 deals on the market.

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