The lowest fixed rate mortgages have fallen to levels not seen since Liz Truss was Prime Minister.
The lowest five-year fixed rate mortgage is now 3.77 per cent, after NatWest cut its interest rates.
This is the lowest a five year fixed rate has been since before the mini-Budget in September 2022, according to analysis by Rightmove.
Although mortgage rates first began to increase towards the end of 2021, interest rates accelerated after the mini-Budget in late September 2022.
The pound tumbled after the then-Chancellor, Kwasi Kwarteng, announced a wave of unfunded tax cuts that unsettled bond markets.
After Liz Truss resigned in October, the new Chancellor Jeremy Hunt reversed nearly all of the mini-Budget announcements, which calmed markets.
Natwest’s 3.77 per cent five-year fixed deal, which comes with a £1,495 fee is available to home movers buying with at least a 40 per cent deposit.
Someone with a £200,000 mortgage being repaid over a 25 year term could expect to pay £1,030 a month on NatWest’s deal.
Home movers and first time buyers buying with a smaller deposit can also now secure rates not seen since the 44-day Prime Minister was in power two years ago.
Those buying with a 25 per cent deposit can secure 3.93 per cent with NatWest or 3.95 per cent with Barclays when fixing for five years.
Halifax, Nationwide, Virgin Money and HSBC are also all offering sub-4 per cent five-year fixes for 25 per cent deposit buyers.
As for anyone buying with a 15 per cent deposit, it’s possible to secure a rate of 4.17 per cent with Barclays , while 10 per cent deposit buyers can get 4.59 per cent with either Nationwide or Virgin Money.
Rightmove says the average five-year fix is now 1 percentage point lower than it was a year ago with the average person with a 40 per cent deposit now able to secure below 4 per cent.
Paying a 4 per cent rate instead of a 5 per cent rate on a mortgage can make a big difference to a household budget.
On a £200,000 mortgage being repaid over 25 years, that’s the difference between paying £1,056 a month and £1,169.
