Mortgage rates drop below 6% for first time in 7 weeks

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Mortgage rates drop below 6% for first time in 7 weeks

The average five-year fixed mortgage rate fell below 6% for the first time in seven weeks on Tuesday, and remained there on Wednesday, according to Moneyfacts.

The average five-year mortgage rate was at 5.95% on Tuesday and was at the same rate on Wednesday, Moneyfacts said. This is down from a high of 6.51% on 20 October.

Rachel Springall, a finance expert at Moneyfacts, said: Borrowers who paused their home ownership plans or parked the idea of refinancing may now be tempted to look at the latest deals on offer.

It is worth noting that rates could fall further, but there is no clear answer as to how quickly that may be. Rates have climbed as the Bank of England put up interest rates to fight inflation but they went up as a result of the mini-Budget.

The number of deals available has recovered, but it is still much less than it was last year.

Jeremy Cox, head of strategy at Coventry Building Society, told BBC the Autumn Statement had helped to bring down mortgage rates and give investors more confidence in the fiscal outlook for the UK. Cox said that UK interest rates would not have to keep rising at the pace they have been in the past. A modern browser with JavaScript and a stable internet connection is required to view this interactive. If not, enter the total you are looking to borrow. If not, enter the total number of years you are looking to borrow over. For those with a mortgage, enter the rate for your current fixed term. For those without a mortgage, enter an interest rate from another source, such as a bank's mortgage rate calculator. The information you provided on your monthly payments would not be enough to pay off your mortgage within the number of years given, so your payments could change at this rate.