Increased mortgage rates have started to fall this week, offering some respite for worried homeowners.
The average two-year fixed-rate mortgage has dropped by 0.11 percentage points, falling to 6.54 percent from 6.65 percent last week when rates hit a 14-year high according to analyst Moneyfacts.
Someone with a £400,000 mortgage would be £662.64 better off on the lower rate over the two year term.
Lenders have also reduced their five-year deals, with the average rate now at 6.41 percent down from 6.51%.
This morning Santander reduced its two-year fixed rates by up to 0.15 percent and its five year deals by as much as 0.5 percentage points.
Its cheapest five-year fixed rate deal is now 5.37 per cent down from 5.48 per cent.
Coventry Building society also cut its fixed-rate deals, with its two-year fix at 5.7 per cent and its five-year deal now at 5.34 per cent.
David Phillip commented “this could be the first signs that more stable market conditions will give lenders the chance to cut fixed rate mortgages where they can, many buyers will have their fingers crossed that rates will start to come down in 2023 before they have to re-finance”
The market has reacted very positively to Rishi’s appointment as PM and Jeremy Hunt remaining as Chancellor, with a significant fall in gilt yields and swap rates, which allows lenders to cut rates further than the modest cuts just announced by HSBC and Coventry.
If you are considering selling your home, David Phillip FRICS has been successfully selling properties in North and West Yorkshire for over 30 years. During this time he has sold properties in a variety of market conditions – add this to his wealth of local knowledge and experience and you can be sure you are using an Estate Agent that will confidently deal with your property sale when the markets are experiencing a little turbulence.
David Phillip Estate Agents 01134 676 400, a: 86, Leeds Road, Bramhope, Leeds, LS16 9AN w:davidphillip.co.uk
Covering Leeds, Bramhope, Adel, Otley, Cookridge, Pool-in-Wharfedale and Huby.