Now remortgage deals drop back below 5%: Experts forecast rates will peak far lower than previously thought
Homeowners remortgaging can lock into five-year rates below 5 per cent for the first time this month.
Five-year remortgage rates have fallen from their peak, dropping from an average of 5.67 per cent at the start of the month to 5.07 per cent across the top ten lenders, according to mortgage broker L&C.
A homeowner with a £150,000 mortgage and a 25-year term could save £53 a month if remortgaging at the current average, compared with the start of November.
Top deals: Five-year remortgage rates have fallen from their peak, dropping from an average of 5.67% at the start of the month to 5.07% across the top ten lenders
This would save them more than £3,200 over the five-year term. First Direct and Nationwide Building Society are offering 4.99 per cent on a five-year fix with £150,000 outstanding.
Two-year fixed rates have also fallen to 5.38 per cent after a high of 5.9 per cent earlier this month.
The drop comes as experts forecast rates will peak at a much lower point than had been previously thought.
David Hollingworth, of L&C Mortgages, says: ‘Although the base rate is expected to continue its climb, falling fixed rates will offer squeezed borrowers the chance of some budgeting certainty against an uncertain backdrop.’