According to international property consultant Knight Frank, the average UK five-year fixed mortgage rate is now below 6% for the first time since the days after the mini-budget.
Fixed rates could fall further, but the days of 1 or 2% mortgage rates are behind us for now, says Simon Gammon of Knight Frank Finance. "This is perhaps the new normal," he adds. "People will have to get used to it."
Simon further commented, "It still makes sense to move to a tracker while fixed rates are falling. Even if the Bank of England makes another substantial hike in December, there should still be a gap between variable rate deals and fixed products so it makes sense to wait on a tracker for the time being. Of course, much of that depends on a borrower's circumstances and their appetite for risk, but headline two year trackers are still in the threes, whereas most two and five year fixed products are in the fives, with one or two in the fours. That will make tracker products attractive for at least a few more months."