Recent data from Moneyfacts has revealed that the rate of fixed rate mortgage price drops is slowing down. This news comes as a surprise to many, as the Bank of England’s base rate has been at a record low for some time now.
The data shows that the average two-year fixed rate mortgage has fallen by just 0.02% in the last month, compared to a 0.14% drop in the same period last year. This is the smallest monthly drop since August 2017, and suggests that lenders are beginning to reach the bottom of their pricing cycle.
The data also shows that the average five-year fixed rate mortgage has fallen by 0.04% in the last month, compared to a 0.17% drop in the same period last year. This is the smallest monthly drop since April 2017, and suggests that lenders are also reaching the bottom of their pricing cycle for longer-term mortgages.
The news is likely to be welcomed by those looking to take out a fixed rate mortgage, as it suggests that lenders are beginning to stabilise their pricing. However, it is important to remember that rates can still change quickly, so it is important to shop around and compare deals before making any decisions.
It is also important to note that while fixed rate mortgages may be more stable in terms of pricing, they may not always be the best option for everyone. Those looking for more flexibility may want to consider a tracker mortgage or an adjustable rate mortgage, as these can offer more flexibility in terms of repayments.
Overall, Moneyfacts data shows that the rate of fixed rate mortgage price drops is slowing down. While this news may be welcomed by those looking for a more stable mortgage rate, it is important to remember that rates can still change quickly and that there are other options available for those looking for more flexibility.