The average interest rates on 2-year fixed rate mortgages (75% LTV) dipped just below 6% in November, according to Bank of England data.
Coventry Building Society analysed the Bank of England figures and found that the average rate dropped just 0.03% last month to 5.97%, having risen by a record 1.83% in October to 6%.
It’s the first monthly reduction in these figures since September 2021, when interest on an average 2-year fixed rate at 75% LTV fell from 1.23% to just 1.2%.
Beth Smith, mortgage product manager at Coventry Building Society, said: “The market is starting to recover and fixed rates for those with at least 25% as a deposit or in equity are now the right side of 6%.
“I don’t think anybody anticipated the sudden spike we saw in October, but the rates on lower loan-to-value mortgages are coming down slowly and it’s likely that we’ll see a continued downward trajectory over time.
“The tide hasn’t yet turned for higher LTVs and last month saw interest rates for 2-year fixed rates at 90% and 95% LTV nudge higher still.
“Any drop in average rates is going to be welcome news for borrowers. And perhaps even those with smaller deposits will be less worried now that fixed rates for high LTVs aren’t rising at the same pace as October. But it’s likely to be a very long time before we see average fixed mortgage rates fall to last year’s levels again.”
