Coventry Building Society has been the latest lender to cut rates this week on all its residential and buy-to-let deals. It comes hot on the heels of reductions from Santander earlier in the week.
The latest data from Moneyfacts shows the average two-year fixed rate mortgage is currently 6.34% which compares to 6.55% at the same point in September.
Meanwhile those fixing for five-years will see average rates of 6.24% according to Moneyfacts.
When it comes to the best rates there are some five-year deals which are coming in below 5%, according to another mortgage data collector, Defaqto.
Its analysis showed those with high deposits or equity could benefit from five-year rates as low as 4.84%.
Katie Brain, consumer banking expert at Defaqto, said: “Ahead of next week’s base rate announcement, we’re finally starting to see a more positive outlook for homeowners when it comes to mortgage rates, with lower loan-to-value five-year fixed rates also now being below 5%.
“The fees for the sub 5% five-year fixed rates have also dropped to normal levels in further good news.”
Is your mortgage ending between now and December?
These price drops are all happening just in time for what is set to be a busy season of remortgaging. According to brokers, this fourth quarter of the year – from October to December – is set to see many two-year fixed rates mature.
Indeed, two years ago, in October 2021, interest rates were still at 0.1% and average mortgage deals were at a record low.
Anyone fixing in then, when deals were cheap, will now be looking at interest rates which double the price.
It means lenders like Coventry chopping rates is very welcome news indeed.
Peter Stamford, director at Alston-based Moor Mortgages: “If you’re one of the many who rushed to seal a two-year deal before Christmas 2021, now’s the time to ring your adviser. Coventry’s making a serious play for market share, and you could benefit.”
Meanwhile, Emma Jones, managing director at Whenthebanksaysno.co.uk, was also: “This is welcome news ahead of some of the Christmas maturities we will likely see due to the rush for Christmas completions back in 2021 for those who took two-year fixed rates.
“It’s a good time to check in with your adviser if you have an application in progress with Coventry Building Society to see if any of these new rates are available to you.”
The Bank of England’s monetary policy committee is due to meet on Thursday 2 November to make it next decision on the Base Rate, which is currently at 5.25%.
