In a report by newsnow.co.uk, a five-year fixed-rate mortgages in the United Kingdom are available at below four per cent once again and it is a further sign the market is settling following turmoil in the autumn.
The HSBC UK has reduced a five-year fixed-rate mortgage deal for borrowers with a 40% deposit to 3.99 per cent. The deal has a GBP999 fee.
Being the first time since September 2022 that a five-year fixed-rate mortgage has been offered by HSBC at a rate below 4percent, it is only available to homeowners who are remortgaging or those who are switching rates (existing customers rolling off an old deal and on to a new one with HSBC).
The move is part of a wider range of mortgage rate cuts made by HSBC UK yesterday.
Many mortgage deals vanished from the market following the mini-budget last September and when mortgages returned they were priced at significantly higher rates.
In recent weeks there have been signs of the fixed-rate mortgage market settling down.
According to figures from financial information website Moneyfacts.co.uk, the average five-year fixed-rate mortgage on the market at the start of January was 5.63percent.
By the start of February it had fallen to 5.20percent.
Borrowers on variable rate mortgages meanwhile have been feeling the impacts of recent rises in the Bank of England base rate.
Figures released by Halifax yesterday show the average house price is now more than GBP12,000 below a peak seen last August.
Several commentators have said they expect to see house prices potentially dipping this year as rising living costs squeeze home buyers’ budgets.
Moneyfacts.co.uk said yesterday morning that HSBC UK is the only lender on its records offering a sub 4% five-year fixed mortgage.
However, the website said it has seen below 4% rates offered on 10-year fixed mortgage deals by Virgin Money and Lloyds Bank.
Rachel Springall, a spokeswoman for Moneyfacts.co.uk said, “It’s encouraging to see fixed mortgage rates coming down for borrowers looking to secure a new deal.”