Now remortgage rates drop back below 5%

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Now remortgages fall back below 5%: Experts predict rates will spike much lower than previously thought

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Homeowners who re-mortgage for the first time this month can lock in at five-year rates of less than 5 percent.

According to mortgage broker L&C, five-year mortgage rates have fallen from their peak, from an average of 5.67 percent at the start of the month to 5.07 percent among the ten largest lenders.

A homeowner with a £150,000 25-year mortgage could save £53 a month if he took out a new mortgage at the current average, compared to early November.

Top Deals: Five-year mortgage rates have fallen from their peak, from an average of 5.67% at the start of the month to 5.07% across the ten largest lenders

This would save them more than £3,200 over the five-year term. First Direct and Nationwide Building Society offer 4.99 per cent over a five-year term with £150,000 outstanding.

The two-year fixed rate also fell to 5.38 percent, after a high of 5.9 percent earlier this month.

The drop comes as experts predict rates will peak at a much lower point than previously thought.

David Hollingworth, of L&C Mortgages, says: ‘While base rates are expected to continue to rise, falling fixed rates offer tight borrowers the chance for some fiscal security in an uncertain environment.’

a.cooke@dailymail.co.uk

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