This is the first time the average two-year deal dropped below 6% since June 2023.
The average rate for a two-year fixed mortgage fell below 6% today for the first time since mid-June of this year – dropping to 5.99% according to Moneyfacts’ data.
This is some months behind the average five-year fixed deal, which dropped below 6.00% in September and currently sits at 5.60%.
“Having peaked at 6.86% in late July, rates have gently been falling since early August due to a combination of factors including falling inflation, base rate pauses and reductions in swap rates,” explained James Hyde, Spokesperson at Moneyfactscompare.co.uk.
“In recent weeks, a number of lenders have begun to offer sub-5% two-year fixed deals, with the lowest rates available UK-wide sitting around 4.75%”, Hyde went on to add.
With the Bank of England’s Monetary Policy Committee (MPC) meeting to vote on the base rate next week, a cut to the central interest rate or even a prolonging of the pause could see average mortgage rates continue to fall further.