Mortgage rates have dropped
Over the last two weeks, the average five-year fixed-rate and two-year deals dropped below 6%.
According to Moneyfacts, mortgage rates continue to fall, while the average five-year fixed-rate deal is now at 5.78%. It is expected, as mortgage lenders have to meet their targets as we're closing in on the end of the year.
“It appears lenders are slowly making reductions to their fixed pricing to adjust their positions,” says Moneyfacts' Rachel Springall.
At the beginning of December 2021, the average two-year deal was at 2.34% (now at 5.99%), which means that anyone applying for a new mortgage can still expect a much higher rate than on previous deals.
“The number of deals available also dropped sharply after the mini-budget,” states BBC. “It has mainly recovered but it is still much lower than it was last year, with 3,705 deals on the market.”
Despite the drops in the number of mortgage deals and rates, and the inevitable effects of mini-budget, in the last few months, the bridging market has been on the surge as a valuable tool for investors and homeowners. The most prominent rise could be seen in broken chains, while this could be due to buyers looking into easing their impending costs, including rapid changes in mortgage rates.