![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/mortgage-rates-fall-after-14-year-high/&media=https://uknews.evprotec.com/wp-content/uploads/2022/10/2022-uk-mortgage-rates-hit-769247379-1.jpg&description=MORTGAGE rates have fallen after hitting a 14-year high, bringing some relief to homeowners. The news comes after the markets reacted positively to Rishi Sunak's appointment as Prime Minister. Homeowners will still face bigger mortgage bills next yearCredit: EPA Mortgage rates rose substantially as the number of deals on the market nosedived following Kwasi Kwarteng's mini-Budget last month. The fall-out from the mini-Budget led sent the pound plummeting against the dollar to a low of $1.03 on September 26. And it led the Bank of England to warn that interest rates would rise to 6% next year. Such a move would make borrowing much more expensive and mortgage rates began to skyrocket. Earlier this month the average two and five-year fixed mortgage rates sat at their highest levels since 2008. According to MoneyFacts the average two-year mortgage rate peaked at 6.65% on October 20 - up from 2.25% in the previous year. The average five-year deal peaked at 6.51% - up from 2.55% in the previous year. But mini-Budget u-turns initiated by the new Chancellor Jeremy Hunt and the appointment of Rishi Sunak as Prime Minister have helped stabilise the market and mortgage rates have already dropped. The Bank of England has also predicted that interest rates might not need to hit 6% next year and forecasts now suggest they'll hit 5% instead - softening the mortgage crisis blow. The average two-year-fixed mortgage rate is now down by 0.15% points on last week from 6.65% to 6.5%. Average five-year fixed mortgage rates are also down by 0.15% points from 6.51% to 6.36%. Nick Morrey, technical director at broker Coreco said: "Brokers have felt that with all the recent uncertainty and volatility lenders have been forced to increase rates to a higher level than was perhaps actually necessary. "Now we seem to have a little more stability lenders are indeed scaling back on their products a little. "In addition to this, the expectation of the base rate going to 6% has been scaled back to le){kind=link}
MORTGAGE rates have fallen after hitting a 14-year high, bringing some relief to homeowners.
The news comes after the markets reacted positively to Rishi Sunak’s appointment as Prime Minister.
Mortgage rates rose substantially as the number of deals on the market nosedived following Kwasi Kwarteng’s mini-Budget last month.
The fall-out from the mini-Budget led sent the pound plummeting against the dollar to a low of $1.03 on September 26.
And it led the Bank of England to warn that interest rates would rise to 6% next year.