Average 5-year fix passes 6%

There are still plenty of 5-yr deals below 6% currently available to both residential and buy to let borrowers. However, the trend is worrying, and quick action to secure a new deal is essential. With more lenders offering an option up to 6 months before the expiry of their current deal, it is so important to engage with a mortgage broker to see what is available, and to be ready to make a quick decision. We are seeing a number of loyalty deals for Product Transfers much cheaper than average rates. For example, Nationwide BS are offering existing clients 5.14% fixed for 5 years with a £999 Fee (subject to LTV). Use the experience of a mortgage broker to get the right product for you, and to keep watching for any improvements - they will look to switch you to a cheaper deal if one comes along.

Now isn't the time to fix for longer. Certainty of repayments and the ability to budget could cost you dearly in the long run. Interest rates are inverted over 2, 5 and 10 years with the cheapest of these being 5.89% (Halifax), 5.36% (Virgin) and 4.94% (HSBC) respectively. This is a sign that the market thinks rates will come down and The Plank of England, Andrew Bailey, will have to reverse his devastating rate hikes that have seen so much pain applied to homeowners. The next inflation print should show a significant fall, with fuel, food and energy bills all on the decline. This could be a significant moment for the mortgage market as lenders race to be top of the best buys table.

Unless the chaos stemming from Threadneedle Street is resolved, average rates will continue to rise. Thirteen consecutive rate hikes have failed to calm inflation which would indicate that other measures need to be explored. The present members of the Monetary Policy Committee are not fulfilling their roles appropriately and should be replaced. Failing that, the government should exercise its powers are intervene which they can do in extreme circumstances.

This kind of data can be very misleading as there are plenty of deals under 6% for 5-year fixes. That being said, anyone with six months left on their current deal should start reviewing their options now and look to secure a deal. The mortgage market is moving fast.