Better mortgage deals - Under 4% now available !
The mortgage rate war has hotted up in the last few days with lenders fighting to be the most competitive for new year house hunters. Last week, HSBC became the first lender to offer a rate below 4%, at 3.94% for a five-year mortgage deal. Halifax, the largest lender, and other banks have reduced their rates since New Year’s Day.
The average five-year fixed mortgage rate is now 4.96%, which is the first time it has dipped below 5% since June 2023, according to Rightmove’s latest mortgage tracker.
Rate cuts are gathering pace, as lenders jostle for position. This can only be good news for those looking to move home and those whose fixed deal comes to an end soon. Competitive interest rates also tend to help property appreciation.
RIGHTMOVE MORTGAGE TRACKER HEADLINES:
– The average 5-year fixed mortgage rate now 4.96%, down from 5.16% a year ago
– The average 2-year fixed now 5.29%, down from 5.42% a year ago
– The average 85% LTV 5-year fixed now 5.06%, down from 5.15% a year ago
– The average 60% LTV 5-year now 4.36%, down from 4.81% a year ago
APPROVALS RISE
Meanwhile, the Bank of England released its latest figures for mortgage approvals showing an increase from 47,900 in October to 50,100 in November.
Net approvals for remortgaging increased from 24,000 in October to 27,000 in November.
