Proactive Investors - Average two-year fixed mortgages rates saw their largest decline since late 2022 between January and February, Moneyfacts has reported.
Declining from 5.93% to 5.56%, the 0.37% drop in fixed two-year fixed rates was the largest recorded month-on-month since December 2022, the comparison site said.
Average Interest on five-year fixed mortgages also fell, slipping from 5.55% to 5.18%.
“There have been big expectations for fixed rates to fall further, and whether now is the right time to refinance will come down to an individual’s circumstances,” Moneyfacts finance expert Rachel Springall commented.
“Lenders are in constant review of their ranges, and it is likely rates will fluctuate in the coming weeks due to the noises surrounding future rate expectations.”
Fixed-rate deals remain cheaper than standard variable-rate mortgages, Moneyfacts added, with the bank rate “unlikely to move for a few months yet”.
Banco Santander (LON:BNC) opted to cut rates on Monday, just three weeks after becoming the first major lender to implement hikes this year, with the bank's mortgages set to enjoy reductions of between 0.05% and 0.16%.