Average fixed mortgage rates on five-year fixed rate deals have fallen for a fourth consecutive month as reported by the latest Moneyfacts UK mortgage Trends Treasury Report data.
The average two-and five-year fixed rates fell between the start of November and the start of December, to 6.04% and 5,65% respectively – this is at the lowest level since June 2023.
The average two-year fixed rate stands at 0.39% higher than the average five-year equivalent, this is much narrower than last month’s difference of 0.43%
The average two-year tracker variable month on month rate rose to 6.1%
Lat month had the highest range of product choice for the 5th month, with 5,694 different options available, this is the highest level in over 15 years when in March 2008 there were 6,192 products. The choice of mortgage de als for borrowers with a smaller deposit or equity have also continued to rise in numbers. Less that a year ago there were fewer than 500 deals. There are over 250 deals for buyers who are only able to stretch to a 5% deposit, this is compared to 144 deals a year ago.
Moneyfacts also reported that the average shelf-life of a mortgage product fell to 17 days down from 20days – this is a sign that lenders are vigorously repricing as the end of 2023 approaches – lenders will also be working hard to achieve their end of year targets, and this will likely result in better deals for borrowers looking to re-finance.
David Phillip commented ‘this is excellent news for people looking to take out a mortgage or re-finance. With mortgage rates becoming more settled, potential movers who have been biding their time and waiting for a calmer market may decide to act the early part of next year – early bird buyers start their search on Boxing Day. This year’s upturn will be eagerly awaited by those who are eager to sell’
David Phillip FRICS has sold properties in all market conditions, if you would like confidential advice on the state of the preopty market or a free market appraisal, then please call on 01134 676 400.
David Phillip Estate Agents , 86, Leeds road, Bramhope, Leeds LS16 9AN w:davidphillip.co.uk
Covering Leeds, North Leeds, Bramhope, Adel, Pool-in-Wharfedale, Otley and Cookridge
