Average mortgage rates have dipped back below 5% 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% 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%, 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 5%, 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 5% since September 2022.
By early October 2022, the average mortgage rate was sitting above 6%, 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 6% 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.”
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