Average two-year fixed mortgage rates have declined for the first time in two months in the UK on better inflation data. BBC informed of.
Mortgage rates fell to 6.79%, its first decline since May 27, from 6.81% on Wednesday, according to MoneyFacts data.
Two- and five-year fixed-rate deals have shrunk on hopes that the Bank of England will not raise interest rates as much as previously expected.
The five-year rate fell to 6.31% compared to yesterday’s number of 6.33%.
More than 40,000 people were expected to renew deals at a higher cost after opting out of existing fixed deals between July and September.
Interest rates have been raised 13 times by the Bank of England since December 21 to curb rising prices.
However, inflation had fallen from 8.7% in the year to May to its lowest level in more than a year, data showed on Wednesday.
But this is still almost four times higher than the bank’s target of 2%, therefore, the bank will now need to hike lower base interest rates to achieve the target.
Rates were expected to exceed 6% but are now estimated at 5.75% CNN,
