The average two-year fixed-rate homeowner mortgage is sitting below six percent for the first time in nearly six months.
Across all deposit sizes, the average two-year fixed-rate homeowner mortgage on the market dipped to 5.99 percent on Friday, falling from 6.01 percent on Thursday, according to Moneyfactscompare.co.uk.
The last time this rate fell below six percent was on June 16, when it was 5.98 percent.
The peak for two-year fixed products this year was reached on July 26, when the average rate hit 6.86 percent.
Lenders have been chopping their fixed rates amid signs that inflation is easing.
James Hyde, spokesperson at Moneyfactscompare.co.uk, said: “The average two-year fixed rate has dipped below six percent, for the first time since mid-June this year.
“Having peaked at 6.86 percent in late July, rates have been gently falling since early August due a combination of factors including falling inflation, base rate pauses, and reductions in swap rates (which lenders use to price fixed-rate mortgages).
“In recent weeks, a number of lenders have again begun to offer sub-five percent two-year fixed deals; with lowest rates available UK-wide sitting around 4.75 percent at present.
“It remains to be seen if the recent rate reductions will continue, as any advocate rises in inflation, base rate, or swap rates may direct to a reversal.”
The average five-year fixed homeowner mortgage rate on the market eased downwards to 5.6 percent on Friday, from an average rate of 5.61 percent on Thursday.
Moneyfacts also counted 5,766 homeowner mortgage products available, up from 5,764 on Thursday.
On the Buy-to-Let market, the average two-year residential mortgage rate dropped to six percent today 6.01 percent on Thursday.
Average five-year buy-to-let residential mortgage rates also experienced a drop today, now resting at 5.94 percent. This is down from an average rate of 5.96 percent on Thursday.
There are currently 2,973 buy-to-let mortgage products available, up from 2,969 products on Thursday.
