The two-year common mounted mortgage rate has dipped below its five-year counterpart for the first time in two years, Moneyfacts knowledge reveals.
An common two-year fix is 5.00%, whereas the five-year rate is 5.01%.
The final time the two-year rate was decrease than the five-year fix was September 2022, the month that Prime Minister Liz Truss set out her mini-Budget. At that time, the common two-year fix was 4.24%, whereas a five-year time period was 4.33%.
Moneyfacts finance knowledgeable Rachel Springall says: “Millions of debtors coming off a hard and fast rate deal this 12 months might be delighted to see mounted mortgage charges on the downward development, with the common two-year mounted rate dipping below its five-year counterpart for the first time since September 2022.
“Back then, mortgage charges began to rise dramatically, within the aftermath of the mini-Budget, and it brought on mass panic for these struggling to purchase their first residence.
“Thankfully, time is a healer, with decrease charges, way more market stability and a leisure in stress testing, mortgage prisoners may now be free to refinance.
Springall provides: “The finish of the inversion within the two- and five-year mounted charges, if sustained transferring onward, will convey debtors again to a extra conventional mortgage market, the place it’s costlier to safe a longer-term mounted mortgage.
“Lenders will little doubt be preserving an in depth eye on swap charges and react rapidly ought to the trail change within the coming weeks.
“This might be the time for debtors to behave rapidly to safe a deal, so it’s sensible for them to hunt recommendation to navigate the mortgage maze.”
