Average mortgage rates fall below 6% for the first time since July

Average mortgage rates fall below 6% for the first time since July (Image: Getty) The average five-year fixed  mortgage  rate offered by lenders has dropped below six percent for the first time since early July. Rates fell from 6.03 percent on Wednesday down to 5.99 percent across all deposit sizes,  moneyfactcompare.co.uk  research shows. The last time that the average five-year fixed deal was below six percent was on July 3, when it stood at 5.97 percent. Matt Smith, a mortgage expert at property website Rightmove, said: “Following the positive news on inflation and the Bank’s decision to hold the Base Rate, we have seen swap rates, the underlying costs of fixed-rate mortgages, stabilise. “The important takeaway from last week for those looking to take out a mortgage soon is that the expectation that the Base Rate has now peaked is now the predominant view of the market, although there is still a sizeable but decreasing risk that we may see one more increase this winter.’ The Bank of England left the Base Rate unchanged at 5.25 percent in September 2023 (Image: EXPRESS) Mr Smith added: “As we approach the final quarter of this year, we are likely to see continued stability in the mortgage market persist with rates continuing to gradually drop and more lenders likely to offer sub-five percent deals.” Major mortgage lenders have been reducing rates this week following the Bank of England’s decision to leave the Base Rate unchanged at 5.25 percent last Thursday. Borrowers with larger deposits now have access to five-year fixed-rate mortgages below five percent. For shorter mortgage terms, the average two-year fixed residential mortgage rate dropped to 6.5 percent on Wednesday, down from 6.53 percent. HSBC UK has lowered several mortgage rates by up to 0.16 percentage points. Among the deals is a five-year fixed-rate mortgage at 4.93 percent with a £999 fee for borrowers with a 40 percent deposit, marking a 0.96 percentage point reduction since July. On Tuesday, Santander UK also cut selected mortgage rates by up to 0.5 percent, offering a five-year fixed rate at 4.95 percent with a £999 product fee for those with a 40 percent deposit, down from the previous 5.1 percent. Best mortgage deals today Uswitch  updates a table of leading mortgage deals every 12 hours. At the time of writing, the top two-year fixes include: Skipton Building Society – 5.7 percent – 90 percent Loan to Value (LTV) NatWest – 5.62 percent – 80 percent LTV Bank of Ireland – 5.39 percent – 70 percent LTV NatWest – 5.34 percent – 60 percent LTV For five-year fixes: Skipton Building Society – 5.28 percent – 90 percent LTV NatWest – 5.02 percent – 80 percent LTV Virgin Money – 4.82 percent – 70 percent LTV Virgin Money – 4.82 percent – 60 percent LTV.