Two- and five-year fixed mortgages have reduced in cost for the fourth month on the run.
According to Moneyfacts, the average two-year fixed rate fell between the start of November and the start of December, to 6.04 per cent.
The financial information provider said the average five-year fix was also down, to 5.65 per cent.
Both are now at their lowest levels since June 2023.
Rachel Springall, finance expert at Moneyfacts, said: “These falls will come as good news to borrowers across the spectrum, including first-time buyers.
“Those borrowers with small deposits will find that average rates are now down considerably from just a few months ago, with the average two-year fixed rate at 90 per cent and 95 per cent LTV resting at 6.01 per cent and 6.34 per cent respectively, down from 6.81 per cent and 7.10 per cent in August 2023, which was the highest monthly point in 2023.
“This could improve the potential mortgage affordability of would-be buyers or those looking to remortgage with limited equity.”
Moneyfacts noted that the average ‘revert to’ rate or Standard Variable Rate (SVR) remained unchanged in December, at 8.19 per cent.
Greater choice of mortgages
Product choice rose between November and December for the fifth month running, to reach 5,694 mortgage options.
This is the highest level of availability in over 15 years, said Moneyfacts.
But products are not sticking around for long, meaning borrowers need to act quick if they see a deal they like.
The average shelf-life of a mortgage product fell to just 17 days, down from 20.
