Average mortgage rates have dropped to their lowest levels since before the Budget in October 2024 but buyers need to act fast to get them.
Data from Moneyfacts shows average mortgage rates on the overall two- and five-year fixed rates fell by 0.13% and 0.10% at the start of March to 5.39% and 5.22% respectively. The drops to the two- and five-year average rates month-on-month were the biggest cuts since the start of October 2024.
At the start of March 2024, the average five-year fixed rate was 5.34% and is now 5.22%. However, the average two-year fixed rate has dropped from 5.76% to 5.39% over the same period.
The best rates aren’t sticking around for long though and the average shelf-life of a mortgage product fell to 16 days, from 36 days a month ago.
Rachel Springall, finance expert at Moneyfacts, said: “The rate cutting momentum was prevalent during February, with the average two- and five-year fixed rates seeing their biggest cuts in almost six months. Such fierce competition in the aftermath of a typically subdued time of year, showed a mix of moves, but it led to the average shelf-life of a mortgage plummeting to 16 days at the start of March, down from 36 days at the start of February.
“The churn of ranges and rate moves circulated around swap rate volatility, but also due to a drop to the Bank of England base rate near the start of the month. Lenders typically act within a couple of weeks of any fierce rises or falls to swap rates.
“However, it is uncertain whether the rate cutting sentiment will be sustained in the weeks to come, particularly by significant margins, but the millions of borrowers due to come off a cheap fixed deal will be hoping for further falls, without doubt.”