The interest rate on the average five-year fixed mortgage has dropped below 6.0 per cent for the first time in nearly three months.
According to independent mortgage monitor Moneyfacts, the last time the average five-year rate was below 6.0 per cent was July 3, but by the end of last week it had returned to 5.99 per cent.
The majority of UK residential mortgages are fixed rates, but 2.4m of those are set to expire at some point between now and July 2024 .
Banking trade body UK Finance says there are about 800,000 of these deals ending in the second half of 2023, and about 1.6m expiring next year.
Simon Gammon, managing partner at Knight Frank Finance, says: "Lenders continued to cut mortgage rates in the wake of better inflation figures and the Bank of England's decision to hold the base rate at 5.25 per cent, which will do a lot to improve sentiment in the property market.
"We do expect more, marginal cuts during the weeks ahead, but that will soon reach a plateau. The best fixed rate deals already start with a four, and we expect rates to settle in that range until the Bank of England opts to cut the base rate, which is unlikely before next spring at the very earliest."