At a glance
- Average mortgage rates dropped below five per cent (4.99% as of 3 November according to Moneyfacts), a return to the September level after an October rise
- The dip is a positive milestone for borrowers, particularly those facing fixed-rate renewals, though its duration is uncertain
- Current lower rates reflect a more competitive market compared to the high spike above six per cent seen after the 2022 mini-Budget
Average mortgage rates have dipped back below five per cent in November, after rising above that point last month, according to a financial information website.
Moneyfactscompare.co.uk said its average mortgage rate stood at 4.99 per cent on November 3 — the same level as it was two months earlier, on September 3.
At the start of October, the average mortgage rate was 5.01 per cent, according to the website’s records.
Moneyfacts’ average mortgage rates were calculated from the total of on-sale “core” market, fixed and variable tracker mortgages.
Some mortgages were excluded, such as shared ownership or equity, or new-build only deals, or mortgages for people with adverse credit backgrounds.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “Borrowers will no doubt be thrilled to see mortgage rates drop, particularly the millions due to come off a cheap fixed rate before the year is over.
“It is a notable milestone to see the Moneyfacts average mortgage rate drop below five per cent, although it remains uncertain on how long this can be sustained.”
Ms Springall said that before September 2025, the average mortgage rate had not dipped below five per cent since September 2022.
By early October 2022, the average mortgage rate was sitting above six per cent, according to Moneyfacts. Mortgage rates jumped following the “mini-Budget”.
Ms Springall added: “The enduring uncertainty in the aftermath of the mini-Budget led to not only a rise in rates, but lenders pulled hundreds of deals from sale.”
The average mortgage rate has not stood above six per cent since November 2023, Moneyfactscompare.co.uk said.
Ms Springall said: “Fast-forwarding to the present day, mortgage rates are much lower thanks to base rate cuts and swap rate movements.”
Mary-Lou Press, president of NAEA (National Association of Estate Agents) Propertymark, said: “It’s extremely positive to see a far more competitive lending market than only 12 months back.
“Consumers have faced a doubled-sided challenge in recent years with elevated inflation and heightened base rates.”
She added: “It will be a case of all eyes on the Bank of England on Thursday, as the next base rate decision is made.”
