Updated UK mortgage rates hit lowest since september 2022

Mortgage rates in the UK have touched their lowest mark since early September 2022, the first time the average five-year fixed rate has dipped below 5% since May 2023.

Citing new data from Moneyfacts, The Guardian reported that the average fixed UK mortgage rates for two and five years have fallen to 4.86% and 4.91%, respectively.

Why UK mortgage rates hit lowest since september 2022?

This steep low in UK mortgage rates is attributed to lenders' growing confidence that the Bank of England will soon lower interest rates from 4% to 3.75%.

The Moneyfacts Average Mortgage Rate plunged from 4.99% to 4.91% month-on-month, and it has dropped by 0.53% year-on-year from 5.44% in December 2024.

Rachel Springall, a finance expert at Moneyfacts, noted that November was particularly favourable for fixed-rate cuts, with the average two-year fixed rate facing its largest monthly decline since August. The five-year fixed rate also recorded its deepest fall in over six months.

As a result, the average shelf-life of a UK-based mortgage product has fallen to just 18 days, while the number of available mortgage deals has risen to over 7,000.

This positive trend in UK mortgage rates reflects a shifting landscape in the UK housing market, providing potential homeowners with easier borrowing conditions.