Boost for buyers as average mortgage rates drop below...

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12 December 2023

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Boost for buyers as average mortgage rates drop below 6%

Average mortgage rates have fallen for the fourth consecutive month and borrowers can now get a two-year fix below 6%.

The latest data from comparison website Moneyfacts shows average mortgage rates have dropped to 5.99% for a two-year dal and 5.60% for five years.

Product choice has also increased to 5,694 options, the highest level of availability for 15 years.

Borrowers need to act fast though as the average shelf-life of a mortgage product fell to 17 days, described as a sign of lenders vigorously repricing as the year end approaches.

Rachel Springall, finance expert at Moneyfacts, said: “Fixed mortgage rates have continued to drop across all loan-to-values (LTVs), month-on-month, on two- and five-year fixed terms.

"These falls will come as good news to borrowers across the spectrum, including first-time buyers.

“Those borrowers with small deposits will find that average rates are now down considerably from just a few months ag0

“Lenders will no doubt be working hard to meet their end-of-year targets right now, indeed the average shelf life of a mortgage has fallen to 17 days, down from 20 days, so hopefully such vigorous repricing will result in better deals for borrowers desperate to refinance.”