The average five-year fixed-rate mortgage has dipped below 5% for the first time since May 2023, according to new figures.
Financial information website Moneyfacts said the average five-year fixed homeowner mortgage rate on Thursday was 4.99%.
It is the lowest average since it was 4.98% on May 3 2023, according to the platform.
The cost of borrowing has steadily dropped over the past year amid further reductions in interest rates by the Bank of England.
The central bank voted to reduce the base interest rate from 4.25% to 4% earlier this month in the third rate cut so far in 2025.
Economists have predicted that the interest rate is likely to drop to about 3.5% before steadying.
Last week, the average two-year fixed-rate mortgage dipped below 5% for the first time since before former prime minister Liz Truss’s so-called mini-budget in September 2022.
On Thursday, Moneyfacts said the average two-year fixed residential mortgage rate was 4.97%.
Data also showed that lenders are offering more mortgage options for potential customers, with 7,031 residential mortgage products available, up from 6,992 on the previous working day.
Earlier this week, official figures showed that house price inflation accelerated last month.
The average UK house price increased by 3.7% to £269,000 in the 12 months to June.
The Office for National Statistics (ONS) announced an uptick in price growth after a 2.7% rise was reported in the 12 months to May.
Meanwhile, average UK monthly private rents increased by 5.9%, to £1,343, in the 12 months to July, the statistics body said.
