Average 5 Year Fixed Rate Mortgages Fall Below 5% pa

Research by Rightmove has found that the average 5 year fixed rate mortgage has fellen below 5% pa for the first time since May 2024.

Speculation and pressure on the Bank of England has been mounting for months now as UK CPI inflation has finally fallen to the Bank of England’s trend growth target of 2% pa.

Given inflation falls, it is reasonable that interest rate cuts will follow and lenders are clearly gearing up for this.

Comment

Every day we receive news from more and more mortgage lenders of rate cuts for first time buyer, homemovers and buy to let investors.  That said, the Bank of England did not cut rates 2 weeks ago and suggested it would not in the run up to the General Election tomorrow.

We also suggest given the summer recess for the House of Commons after the General Election starting on 8^th July, we cannot see rates being cut until September although many are now suggesting that rates may be cut in August.