Mortgage Rates Fall Below 5%: Positive Signs for Buyers and Sellers
The UK property market has received a welcome boost as the average five-year fixed mortgage rate has fallen below 5% for the first time since May 2023.
Hitting 4.99%, this small but significant drop reflects a slow and steady easing in the cost of borrowing, bringing positive news for both prospective buyers and homeowners looking to remortgage. Even modest reductions in mortgage rates can have a tangible impact, improving affordability and inspiring greater confidence in the property market.
Recent figures show that the average two-year fixed rate has also dipped, standing at 4.97%. Experts note that lenders are competing more aggressively, offering a wider range of products and attractive deals for those with substantial deposits or existing equity. This competition can help borrowers secure rates well below the average, sometimes under 4% for two, three or five-year fixes. With over 7,000 residential mortgage products now available, buyers have more choice than ever before, creating an encouraging environment for those planning to enter the market.
While inflation levels suggest further base rate cuts in 2025 are unlikely, the current rates still mark a meaningful improvement compared with the peaks seen following the mini-budget in 2022. Borrowers can now enjoy slightly lower monthly repayments and enhanced affordability, making it a more accessible time to secure a mortgage.
For sellers, this is an ideal moment to consider putting your property on the market. With buyer confidence boosted by lower mortgage rates, demand is likely to remain strong. If you have been contemplating selling, now could be the perfect time to take advantage of the positive shift in the market and find a buyer ready to move.
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