A mortgage expert has offered advice to individuals considering remortgaging as millions of fixed-rate deals approach their end this year. The guidance coincides with positive news for homeowners, with mortgage rates experiencing the most significant decline since 2022.
According to a financial information website, the average two-year fixed mortgage rate on the market saw its largest month-on-month drop since December 2022 in February. At the beginning of February 2024, the average rate stood at 5.56 percent, down from 5.93 percent at the start of January this year, across all deposit sizes.
This decrease of 0.37 percent marks the most substantial monthly decline reported by Moneyfacts since December 2022. Additionally, five-year fixed mortgage rates dipped from 5.55 percent in January 2024 to an average of 5.18 percent at the start of February.
Rachel Springall, a finance expert at Moneyfacts, advised, "Borrowers exploring new mortgage deals may be pleased to learn that fixed mortgage rates have continued their downward trajectory, with the average two-year fixed rate seeing its most significant decrease since December 2022."
Springall continued, "Those borrowers who have been patiently waiting to refinance or are preparing for the expiration of their mortgage deal should consider reviewing rates, as lenders are closely monitoring the volatile swap rate market, which often influences fixed-rate pricing."
She added, "There have been high expectations for further decreases in fixed rates, and whether now is the optimal time to refinance depends on an individual's circumstances. Lenders are continually evaluating their offerings, and it's probable that rates will fluctuate in the coming weeks due to speculation surrounding future rate adjustments.