Sub-5% mortgages deals wiped out in a month
Mortgage deals priced below 5% have all but vanished, according to the latest data.
The findings by Moneyfacts suggest the number of fixed deals priced below this point has collapsed by 99% in a single month.
Only nine sub-5% fixed deals remain, down from 1,494 at the beginning of September, excluding products available only for lending in Northern Ireland.
Add in the Northern Ireland-only deals and the figure falls from 1,691 to 107, a drop of 94%.
Average rates
Average fixed rates have climbed to their highest levels in three years.
The average two-year fixed rate currently stands at 5.98%, its highest since mid-December 2023, while the average five-year fixed has reached 6%, the highest since late September 2023.
By contrast, the average two-year fixed stood at 5.59% at the beginning of last month.
It shows how quickly the mortgage market has shifted for borrowers searching for the lowest rates.”
Variable rates have held up far better. The number of sub-5% variable deals has slipped only slightly, from 411 at the beginning of September to 389 today.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, says: “This shows just how quickly the mortgage market has shifted for borrowers searching for the lowest rates.”
She adds: “Average fixed mortgage rates rising back to three-year highs will be disastrous news for borrowers. Borrowers who were hoping mortgage rates would stabilise will be disappointed.”
The post Sub-5% mortgages deals wiped out in a month appeared first on The Negotiator.
Author: Gemma
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