Five year mortgage rates drop – good news for homebuyers

Homebuyers wanting to fix their mortgage over a longer period of time will be happy to see that five year mortgage rates have significantly dropped over the last year.

New research from Moneyfacts.co.uk shows that the average five year mortgage rate has fallen by 0.19% in the last 12 months while the average two year mortgage rate has fallen by just 0.08%.

This is good news for buyers wanting to fix their mortgage during a time of political uncertainty and shows the current competition evident in the mortgage lending sector.

Darren Cook, finance expert at Moneyfacts.co.uk, said: “It seems that competition within the five year fixed rate mortgage sector is pushing the average rate down closer towards the two year fixed average rate. As a result, the difference between these two average rates now stands at 0.31%, which is 0.11% lower than it was a year ago.”