Lenders slash more fixed rates below 5%

By: ameer@trustedteam.com

Anyone comparing mortgages may be pleased to see the arrival of more sub-5% options this week.

The latest analysis from Moneyfactscompare.co.uk reveals that within the residential mortgage sector this week: Halifax, HSBC, Yorkshire Building Society, Virgin Money, Bank of Ireland UK and Bank of Ireland UK for Intermediaries revealed new sub-5% two-year fixed mortgages.

At the start of November only one lender had two-year fixed mortgages priced below 5% (Danske Bank, these deals were available to Northern Ireland only).

There were no lenders offering a sub-5% two-year fixed mortgage at the start of October.

Overall, there are now 27 lenders offering a sub-5% fixed mortgage (considers lenders across any initial fixed term, e.g. up to and including 10-year offers) compared to 13 at the start of October.

Moneyfactscompare finance expert Rachel Springall comments: “It’s encouraging to see cheaper mortgages on the market for borrowers, particularly the return of two-year fixed mortgages priced below 5%.

“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”.

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