Mortgage rates fall for first time since July

59
2
Mortgage rates fall for first time since July

For the first time since July, the average new five-year fixed mortgage rate has fallen back below 6%, according to the industry's leading data provider.

The average five-year fixed residential mortgage rate on sale is now at $5.99%, down from 6.03% on Wednesday.

But big mortgage lenders are still cutting prices even lower after the Bank of England left the base rate unchanged at 5.25% last week. There are a growing number of 'best-buy' five-year fixed-rate deals now available at below 5%, though in many cases these are restricted to buyers able to put up a large deposit or come with large fees.

The last time the average five-year fixed deal fell below 6% was on 3 July, when it was at 5.97%, according to Moneyfacts. The average five-year rate was 6.33% as of July 19th.

The average two-year fixed mortgage rate, meanwhile, is 6.50% - down from 6.53% on Wednesday. It was at 6-81% on July 19th.

Fixed-rate mortgage prices have been on a rollercoaster ride during the past 12 months or so, following Kwasi Kwarteng's disastrous mini-budget last year that resulted in chaos in the financial markets, then gradually fell back as markets stabilized. They were then spooked once again by a smaller than expected drop in the UK inflation rate at the end of May, but have since begun falling again.

Simon Gammon, a managing partner at Knight Frank Finance, said lenders had continued to reduce mortgage rates in the wake of better inflation figures and the Bank of England's decision to hold the base rate after 14 consecutive increases, which will improve sentiment in the property market.

He said he would continue to work with the government to improve our health care system, adding: ''As a result, we can't concentrate on what we're doing in the field of medicine,'' he said.