New Average Mortgage Rates Fall Below 6%

New average two and five-year fixed-rate mortgages now have an interest rate of less than 6% for the first time for two months, data shows.

Financial information service Moneyfacts said the typical two-year deal on the market now had a rate of 5.99%, and was likely to fall further.

Mortgage costs had surged after the mini-budget, peaking at 6.65%.

The average five-year fixed-rate deal dropped below 6% nearly two weeks ago and is now at 5.78%.

"It appears lenders are slowly making reductions to their fixed pricing to adjust their positions, and in doing so, the overall average two and five-year fixed mortgage rates now sit below 6%," said Rachel Springall, from Moneyfacts.

"In the weeks to come rates could fall further, particularly if mortgage lenders have targets to meet as we edge closer to the end of 2022.

"As the mortgage market remains volatile, it is vital borrowers seek independent advice to consider the deals on offer to them, or whether they need to be a little patient in hopes rates will fall further."

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