The two-year common mounted mortgage rate has dipped below its five-year counterpart for the first time in two years, Moneyfacts information 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 typical 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 shall be delighted to see mounted mortgage charges on the downward development, with the typical 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 precipitated mass panic for these struggling to purchase their first house.
“Thankfully, time is a healer, with decrease charges, far more market stability and a rest in stress testing, mortgage prisoners would possibly now be free to refinance.
Springall provides: “The finish of the inversion within the two- and five-year mounted charges, if sustained shifting 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 question be protecting an in depth eye on swap charges and react shortly ought to the trail change within the coming weeks.
“This might be the time for debtors to behave shortly to safe a deal, so it’s clever for them to hunt recommendation to navigate the mortgage maze.”
