Following the mini-budget of the short-lived Truss premiership, mortgage rates soared to their highest in 10 years. Now some of Britain’s biggest lenders have started to cut the cost of fixed mortgage deals by more than half a percentage point.
This brings the average rate of a two-year mortgage fix down to 6.48 per cent, the lowest since 17 October.
Major lenders such as Barclays, HSBC, and Santander are now bringing the cost of their cheapest fixed deals closer to 5 per cent. This will save borrowers hundreds of ponds a year off the cost of their mortgage.
Mortgage brokers however have urged borrowers to sit tight for a little longer in the hope that rates will fall further.
As we have witnessed the past couple of months, nothing in life is certain, rates can go up as well as down and it is important to buy a house you can afford even after factoring in significant rate rises.