Mortgage rates have hit their lowest in over six months following the latest spate of cuts by major lenders in the UK.
Rates on average for two-year fixed mortgages fell by 0.21% to 5.56% between August and September, according to Moneyfacts, the lowest since February.
Typical five-year fixed rates scaled back 0.18% to 5.20% in the meantime, down to a level last seen in March.
This comes after lenders have been locked in a battle to win over prospective buyers recently, spurred on by the Bank of England’s base interest rate cut in early August.
A slew of big banks announced mortgage rate cuts last week as a result, including Banco Santander (LSE: BNC), NatWest Group PLC (LSE:NWG), Barclays PLC (LSE:BARC) and HSBC Holdings PLC (LSE:HSBA).
Virgin Money UK PLC (LSE:VMUK) was among those to have cut beforehand, while Lloyds Banking Group PLC (LSE:LLOY)’s Halifax looked to tempt first-time buyers with a hiked lending limit.
Moneyfacts finance expert Rachel Springall noted the reduction in average rates marked the second consecutive monthly fall in “welcome news for prospective borrowers”.
“It can take a few weeks for lenders to react to a volatile swap rate market, so it’s good to see mortgage pricing moving in a positive direction,” she said.