US EditionMortgage rates below 5% for first time since Truss budget
The Bank of England’s recent base rate cut to 4% led to the average two-year fixed mortgage rate dropping to 4.99%, its lowest since September 2022, Moneyfacts reported.
- On Wednesday, the typical interest rate for a two-year fixed mortgage dipped below 5% to 4.99%, marking its lowest level since the mini-budget announced by Liz Truss in September 2022.
- This drop follows the Bank of England's cut of the base interest rate from 4.25% to 4%, aiming to ease borrowing costs amid economic pressures and inflation forecasts.
- Nearly 1.6 million fixed-rate mortgage deals will end in 2025, including 900,000 due in the year's second half, allowing many households to access the lower rates.
- Adam French of Moneyfacts described this as "a symbolic turning point" because lenders now compete more aggressively despite rates remaining above pre-2022 lows.
- The rate decline may benefit borrowers shifting from more expensive five-year fixes to shorter two- or three-year deals due to price differences and rate expectations.
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14 Articles
14 Articles
Mortgage WIN for 900,000 households as interest rates fall to pre-Liz Truss Budget levels: 'Turning point!'
British homebuyers have been awarded a win as typical two-year fixed mortgage rates haven fallen below five per cent for the initial occasion since the financial crisis
·London, United Kingdom
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Coverage Details
Total News Sources14
Leaning Left1Leaning Right1Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 17%
C 67%
R 17%
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