According to figures from Moneyfacts, this means the number of providers offering mortgages within this pricing bracket has more than doubled from month to month. This includes products of any fixed term up to 10 years.
While there has been some availability for across the five-year fixed offering, the start of November saw the return of two-year fixes with a rate below five per cent. At the start of October, no lenders were offering two-year fixed mortgages with this pricing.
At the start of this month, just one lender – Dankse Bank – had a two-year fixed deal with a rate below five per cent. These were only available in Northern Ireland.
Since then, other providers including high street lenders have cut pricing to offer deals at a similar level.
This includes Halifax, HSBC, Yorkshire Building Society, Nationwide, Virgin Money and Bank of Ireland UK.
More cuts coming
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “It’s encouraging to see cheaper mortgages on the market for borrowers, particularly the return of two-year fixed mortgages priced below five per cent. This is great news for those who do not want to commit to a longer-term fixed deal.
“Several large lenders have slashed fixed mortgage rates and there is much anticipation for more cuts in the coming weeks. As we head ever closer to the year-end, lenders will be weighing up both the current competition and their own lending targets, so it’s a promising market for consumers looking for a new deal.”
She added: “As always, it is imperative borrowers assess the overall true cost of any mortgage deal instead of assuming the lowest rates are the best choice, as some of the lowest priced deals carry high fees or few incentives. Seeking independent advice to weigh up all the options is wise, especially if borrowers have limited upfront cash to pay for any product fees or legal costs.”
