Good news on mortgage rates

The mortgage market has seen a positive development as increased competition among lenders has led to interest rates dipping below 4% for certain mortgage deals with a 60% loan-to-value (LTV) ratio. The chart illustrates the trend in fixed mortgage rates over the past year, comparing 5-year and 2-year fixed rates. While rates have fluctuated, the latest data from February 2025 indicates that some mortgage providers have introduced rates under the 4% threshold, as highlighted by the yellow reference line. Both 5-year and 2-year fixed mortgage rates demonstrate a downward trend, suggesting a growing competitive pricing environment aimed at attracting borrowers. The data, sourced from Dataloft by PriceHubble and the Bank of England, reflects a broader shift in lending conditions, potentially offering favourable borrowing opportunities for homebuyers seeking lower mortgage costs.

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