- The mortgage market is showing signs of recovery, with some major lenders reducing borrowing costs and hundreds of deals returning to the market.
- This follows a period of significant rate increases, with average 2-year fixed rates rising to 5.88 per cent and 5-year fixes to 5.77 per cent since the conflict in Iran.
- The recent rate cuts are attributed to money markets now expecting fewer interest rate hikes from the Bank of England, making borrowing cheaper for lenders.
- Santander, Atom Bank, TSB, Coventry, and Skipton Building Society are among the lenders that have made meaningful rate reductions, with Santander cutting up to 0.28 percentage points on some first-time buyer deals.
- While 809 deals have returned since late March, the total number of available mortgage products remains lower than before the Iran conflict, and experts warn that progress is still fragile.
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