Average five-year fixed mortgage rate drops below 6%

It’s the first time in seven weeks since this average figure has dropped below 6%.  

The average five year fixed mortgage rate has dropped below 6% today, having trended above this figure since 5 October.

This will give some reprise for borrowers who saw mortgage rates soar in the aftermath of the mini-Budget in September.

The impact of the mini-Budget and the latest base rate increase on mortgage rates is explained in more detail in this article.

Today, the average five-year fixed rate stands at 5.95%. This average rate breached 5% on 30 September and peaked on 20 October 2022, the day former Prime Minister Liz Truss resigned.   

It is worth noting that rates could fall further still, but there is no clear answer as to how quickly that may be.

Although fixed mortgage rates are falling, there is still room for improvement as there are only a handful of lenders offering sub-5% fixed deals.  

Borrowers may feel they have to be patient for a little while longer before they commit to a new fixed mortgage, or even wait until next year to see how the market recovers from the recent interest rate uncertainty.

Otherwise if time is of the essence, then consider reading our weekly mortgage roundup which highlights some of the cheapest mortgage deals on the market.