Relief for borrowers as fixed-term mortgage rates fall to six-month low
Fixed-term mortgage rates have fallen to a six-month low, providing additional reprieve for borrowers.
Average fixed-rate mortgages with a term of two and five years have fallen for the fourth consecutive month, says analyst Moneyfacts.
It comes ahead of the Bank of England’s key interest rate announcement tomorrow.
New listings: Average two- and five-year fixed-rate mortgages are down for fourth straight month, analyst Moneyfacts says
Experts are divided on whether the Bank will go for another rate hike after the turmoil in global financial markets.
The average cost of a two-year deal is down from 5.44 percent in February to 5.32 percent this month, while five-year fixes are down 0.2 percentage points to 5 percent.
This is the largest difference between rates in 15 years.
Rachel Springall, of Moneyfacts, says: “With overall two- and five-year fixed average rates falling to their lowest level in six months, borrowers who put their plans to re-mortgage on hold towards the end of last year may now be looking to the latest offers.’
Karen Noye, a mortgage expert at wealth management firm Quilter, says fixed-rate mortgages are likely to continue falling even if the bank raises rates.
“For those who still choose to move, it may be worth holding on for two years to minimize the amount of time spent on an inflated rate and then make the most of significantly lower predicted rates.” in 2025,” she says.
t.armstrong@dailymail.co.uk