Now mortgage offers are falling back below 5%: experts predict rates will peak much lower than previously thought
Repaying owners can lock in five-year rates below 5% for the first time this month.
Five-year mortgage rates have fallen from their peak, falling from an average of 5.67% at the start of the month to 5.07% among the ten major lenders, according to mortgage broker L&C.
A homeowner with a £150,000 mortgage and a 25-year term could save £53 a month if they paid off at the current average, compared to early November.
Best deals: Five-year mortgage rates fell from their peak, dropping from an average of 5.67% at the start of the month to 5.07% for the top ten lenders
This would save them over £3,200 over the five-year term. First Direct and Nationwide Building Society are offering 4.99% on a five-year solution with an outstanding amount of £150,000.
Two-year fixed rates also fell to 5.38% from a high of 5.9% earlier this month.
The drop comes as experts predict rates will peak at a much lower point than previously thought.
David Hollingworth, of L&C Mortgages, said: “While the base rate is expected to continue to climb, lower fixed rates will offer busy borrowers the opportunity for some fiscal certainty in an uncertain environment.”
a.cooke@dailymail.co.uk
