Average five-year mortgage at lowest level since 2023

The average five-year fixed mortgage rate has dropped below 5%, signaling a potential shift in the market sentiment and boosting buyer confidence. According to Moneyfacts, the average rate on a five-year mortgage is now 4.99%, down from 5% the previous day, while the two-year fixed rate fell to 4.97%. Lenders are competing more aggressively, offering more choice with over 7,000 residential mortgage products available. With fixed interest rates below 4% possible for those with sizable deposits or home equity, borrowers looking to buy a house or remortgage may benefit from these lower rates.