UK fixed rate mortgages dip below six percent

According to data from MoneyFacts.co.uk the average rate for a fixed-term mortgage fell to 5.95% on Tuesday (22 November), the lowest level since early October.

This will come as a welcome development following the soaring mortgages rates that were seen in the aftermath of September’s now-notorious mini-budget, that set the stage for Liz Truss’s resignation.

The average rate breached 5% on 30 September and peaked on 20 October 2022, the day Truss resigned. 

The average rate on two-year mortgages also fell to 6.13% on Tuesday, down from 6.65% in late October.

Many lenders withdrew mortgage products in the aftermath of the budget, with 41% of all mortgage products being removed from the market at its peak.

Rachel Springall, finance expert at MoneyFacts.co.uk, said: “It is worth noting that rates could fall further still, but there is no clear answer as to how quickly that may be.

“Although fixed mortgage rates are falling, there is still room for improvement as there are only a handful of lenders offering sub-5% fixed deals.  

“Borrowers may feel they have to be patient for a little while longer before they commit to a new fixed mortgage, or even wait until next year to see how the market recovers from the recent interest rate uncertainty.”