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Mortgage rates are on a downward path with the lowest rates dropping from around 4.8 per cent to around 4.2 per cent over the past couple of months.
Most notably, Nationwide cut mortgage rates three times in June alone alongside many other banks and building societies.
Nationwide now offers a market-leading 4.19 per cent two-year fixed rate for those moving home with at least a 40 per cent deposit and needing a minimum loan amount of £300,000, though this comes with a hefty £1,499 fee.
The next lowest rate is offered by Coventry Building Society at 4.24 per cent, with a £999 fee.
In terms of the market average. The average two-year fixed rate mortgage was 4.83 per cent at the start of March. That climbed to 5.89 per cent by 13 April. Since then, it has fallen to 5.52 per cent.
Rather than following the base rate, fixed mortgage rates are largely based on Sonia swap rates, which track future interest rate expectations - and these are falling.
This means that while the Bank of England has held interest rates at 3.75 per cent since December last year, mortgage rates can still go up and down based on what the financial markets expect will happen to interest rates in the future.
Borrowing boost: Mortgage lenders have made multiple cuts across first-time buyer, home mover, remortgagerates in recent weeks
Nicholas Mendes, mortgage technical manager at broker John Charcol says: 'Swap rates have fallen meaningfully from their May peak, easing again after softer inflation figures.
'The two-year swap is now sitting below 4 per cent. Lenders have already begun passing some of that on.'
> Best mortgage rates calculator: Check the deals you could apply for
Mortgage rates: What's happening
While mortgage rates are around 0.75 percentage points higher than they were since the start of the conflict in the Middle East, the market appears to be relatively calm.
In 2023, a combination of base rate hikes and worries over inflation figures saw average two-year fixed mortgage rates reach a high of 6.86 per cent in the summer, according to Moneyfacts, while five-year fixed rates hit 6.35 per cent.
Mortgage rates still remain far higher than borrowers had enjoyed prior to the surge in 2022.
Roughly five years ago, the averages were hovering around 2.5 per cent for a five-year fix and 2.25 per cent for a two-year.
Today the average two-year fix is 5.52, up from 4.83 per cent at the start of March and the average five-year fix is 5.53 per cent, up from 4.95 per cent.
As recently as October 2021, some of the lowest mortgage rates were under 1 per cent. Now they are hovering around 4.5 per cent.
Will mortgage rates go up or down?
A prolonged Middle East conflict could drive up mortgage costs. However, the prospects for that change on almost a daily basis.
Mortgage pricing is being pushed around by inflation expectations, swap rates, and the cost of funding, not just by what the Bank of England does with base rate.
That means borrowers cannot afford to sit back and wait for a neat base rate cut to solve the problem.
Nicholas Mendes, mortgage technical manager at broker John Charcol says: 'If you are within six months of your current deal ending, the sensible move is to start looking now.
'Securing a rate early gives you a safety net if pricing moves higher, but in many cases, you can still switch to a cheaper product before completion if the market improves.
'The biggest mistake is drifting onto a lender’s standard variable rate because the market feels too uncertain. That can be far more expensive than taking action early.
'The key message is not to wait until the final few weeks. In a market this jumpy, time is one of the few thing’s borrowers can still control.
'The cheapest-looking rate is not always the best answer once fees, flexibility, cashback, and lender criteria are taken into account.'
Should you fix for two or five years?
Choosing what length to fix for depends on what you think may happen to interest rates but should importantly take more account of what your personal circumstances are.
David Hollingworth adds: 'Borrowers need to think carefully about whether longer-term security would suit them better, rather than heading straight for the lowest rate.'
Key factors include whether you may move soon, how much you prefer the security of fixed payments for longer and how well you could cope with a rise in mortgage bills.
Fixed rates of any length offer borrowers certainty over what their payments will be from month-to-month.
Those opting for a shorter two-year fix are backing interest rates falling over the next couple of years, or at least staying steady, so that when it is time to remortgage their bills won't rise.
With five-year fixes borrowers are locking into rates that they know won't change for longer, perhaps either because they believe rates may rise or because they prefer the security. Five-year fixes were hugely popular when rates were lower.
If rates fall, a tracker mortgage without an early repayment charge could put borrowers in a position to take advantage.
However, for all the potential benefit, a tracker product will also leave people vulnerable to further base rate hikes, while also being more expensive than fixed rates at present.
Whatever the right type of mortgage for your circumstances, shopping around and speaking to a good mortgage broker is a wise move.
> Check the best mortgage rates based on your house price and loan size
What are the best mortgage rates?
Bigger deposit mortgages
Five-year fixed rate mortgages
NatWest has a five-year fixed rate at 4.31 per cent with a £1,495 fee at 60 per cent loan to value.
Coventry Building Society has a five-year fixed rate at 4.34 per cent with a £999 fee at 60 per cent loan to value.
Two-year fixed rate mortgages
Coventry has a 4.24 per cent two-year fixed rate deal with £999 fees at 60 per cent loan-to-value.
Nationwide has a two-year fixed rate at 4.24 per cent with a £999 fee at 60 per cent loan to value.
Mid-range deposit mortgages
Five-year fixed rate mortgages
Virgin Money has a five-year fixed rate at 4.42 per cent with a £499 fee at 75 per cent loan to value.
NatWest has a five-year fixed rate at 4.44 per cent with a £1,495 fee at 75 per cent loan to value.
Two-year fixed rate mortgages
Coventry Building Society has a two-year fixed rate at 4.39 per cent with a £999 fee at 75 per cent loan to value.
Nationwide has a two-year fixed rate at 4.44 per cent with a £999 fee at 75 per cent loan-to-value.
Low-deposit mortgages
Five-year fixed rate mortgages
Coventry Building Society has a five-year fixed rate at 4.62 per cent with a £499 fee at 75 per cent loan to value.
Virgin Money has a five-year fixed rate at 4.64 per cent with a £995 fee at 75 per cent loan to value.
Two-year fixed rate mortgages
Coventry Building Society has a two-year fixed rate at 4.69 per cent with a £999 fee at 90 per cent loan to value.
Nationwide Building Society has a two-year fixed rate at 4.69 per cent with a £999 fee at 90 per cent loan to value.
Tracker and discount rate mortgages
The big advantage to a tracker mortgage is flexibility. They are also slightly cheaper following the rise in fixed rates.
Tracker mortgages essentially track the Bank of England base rate, plus a percentage. For example, base rate (3.75 per cent) plus 0.25 per cent giving an overall rate of 4 per cent.
Tracker mortgages also have a rather unique feature in that they tend to come without early repayment charges and can therefore be paid off or switched away from without penalty.
The lowest two-year tracker deal is currently offered by Halifax at 3.96 per cent and a £1,599 fee. That's base rate plus 0.21 per cent.
On a £200,000 mortgage being repaid over 25 years that would equate to paying £1,051 a month.
Lloyds Bank is also offering sub-4 per cent tracker deals at present.
There may also be cheaper rates to be had with discount rate mortgages, which track a certain level below the lenders' standard variable rate.
A fixed-rate mortgage will almost inevitably carry early repayment charges, meaning you will be limited as to how much you can overpay, or face potentially thousands of pounds in fees if you opt to leave before the initial deal period is up.
You should be able to take a fixed mortgage with you if you move, as most are portable, but there is no guarantee your new property will be eligible or you may even have a gap between ownership.
Many tracker deals have no early repayment charges, which means you can up sticks whenever you want - and that suits some people.
Make sure you stress test yourself against a sharper rise in base rate than is forecast.