Recent data from Moneyfacts has revealed that the average fixed mortgage rates have decreased again, making it an ideal time for those looking to purchase a home. This is great news for potential homebuyers, as it means they can get a better deal on their mortgage.
The Moneyfacts data shows that the average two-year fixed mortgage rate has dropped to 2.48%, down from 2.51% in the previous month. This is the lowest rate since October 2016, and it is the fifth consecutive month that rates have decreased. The five-year fixed mortgage rate also decreased, dropping to 2.72%, down from 2.77% in the previous month.
The decrease in mortgage rates is due to a number of factors, including the Bank of England’s decision to keep interest rates at 0.75%. This has encouraged lenders to reduce their mortgage rates in order to attract more customers. Additionally, the UK’s economic outlook has been uncertain due to Brexit, which has also contributed to the decrease in mortgage rates.
The decrease in mortgage rates is good news for potential homebuyers, as it means they can get a better deal on their mortgage. It is also beneficial for those looking to remortgage, as they can take advantage of the lower rates and save money on their monthly payments.
However, it is important to remember that mortgage rates can change quickly, so it is important to shop around and compare different lenders before making a decision. Additionally, it is important to consider other factors such as fees and charges when choosing a mortgage, as these can have a big impact on the overall cost of the loan.
In conclusion, Moneyfacts data shows that average fixed mortgage rates are decreasing again, making it an ideal time for those looking to purchase a home or remortgage their existing loan. It is important to shop around and compare different lenders before making a decision, and to consider other factors such as fees and charges when choosing a mortgage.