Mortgage rates hit six-month low in boost for buyers
Homebuyers looking to secure a mortgage are now facing more choice and lower rates than six months ago.
New data from comparison website Moneyfacts shows mortgage rates have hit their lowest level for six months following a fourth consecutive monthly decline.
However, the overall average pricing on a two-year fixed mortgage rate now stands at 0.32% higher than the five-year equivalent.
This is the first time in 15 years that the average two-year fixed was priced this far higher.
Both the average two- and five-year fixed rates fell month-on-month as of March, down to 5.32% and 5.00% respectively, according to Moneyfacts.
The average five-year fixed rate at 90% and 95% loan-to-value fell to 4.99% and 5.33% respectively month-on-month, which is 0.16% and 0.13% lower compared with the the start of October 2022.
At the other end of the spectrum, in the 60% loan-to-value tier, the average five-year fixed rate has fallen by 0.18% from 4.94% to 4.76% over the same period.
Product choice stands at 4,372 options, a subtle rise from 4,341 in February 2023.
Moneyfacts has also highlighted that the average standard variable rate that borrowers automatically move to at the end of a deal has now breached 7% for the first time since October 2008, “which means borrowers will be in for a shock if they are about to revert from a low fixed rate deal.”
Rachel Springall, Finance Expert at Moneyfacts, said: “Borrowers must therefore ensure they carefully consider the mortgage options available to them, particularly fixed rates, if they want peace of mind to secure their monthly repayments.”
source:https://www.houseladder.co.uk/