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The mortgage market has seen a significant shift as average rates for both two- and five-year fixed deals have dropped to their lowest levels since before the Budget in October 2024. However, buyers looking to take advantage of these reduced rates will need to act quickly, as deals are disappearing faster than before.

Biggest Mortgage Rate Cuts in Six Months

According to Moneyfacts, the start of March saw the average two-year fixed mortgage rate fall by 0.13% to 5.39%, while the average five-year fixed rate declined by 0.10% to 5.22%. These reductions mark the largest cuts in nearly six months.

For context, at the beginning of March 2024, the average five-year fixed rate was 5.34%, but it has now dropped to 5.22%. Meanwhile, the two-year fixed rate has seen a more dramatic decline, falling from 5.76% to 5.39% within the same period.

Mortgage Deals Are Vanishing Fast

While these rate reductions present an excellent opportunity for homebuyers and those looking to remortgage, the best deals are not lasting long. The average shelf-life of a mortgage product has dropped significantly, from 36 days in February to just 16 days at the start of March.

Rachel Springall, a finance expert at Moneyfacts, notes that mortgage rates have been under competitive pressure since February. The combination of swap rate volatility and a reduction in the Bank of England base rate has driven lenders to adjust their offerings quickly. However, she cautions that the sustainability of this rate-cutting trend remains uncertain.

What’s Next for Borrowers?

For the millions of homeowners coming off historically low fixed-rate deals, these rate drops offer a glimmer of hope. However, given the rapid turnover of mortgage products, buyers and remortgagers should act swiftly to secure a favorable deal before rates potentially fluctuate again.

Final Thoughts

If you're considering locking in a mortgage deal, now is the time to explore your options. Speak with a mortgage broker to find the best available rates before they disappear. With rates at their lowest levels in months but uncertainty looming, taking action sooner rather than later could make a big difference in your long-term financial plans.

For more updates on mortgage trends and property market insights, stay tuned!