Mortgage interest rates have continued to fall since the Bank of England increased the base rate earlier this month.

Mortgage lenders have been reducing rates on their mortgage products in recent weeks after pricing in larger base rate hikes following former prime minister Liz Truss’ unfunded tax cut announcements.

Fresh data provided by Moneyfacts reveals that the average five-year fixed mortgage rate has dropped below 6% for the first time in seven weeks.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Borrowers may well breathe a sigh of relief to see that fixed mortgage rates are starting to fall, but there may be much more room for improvement. As the average five-year fixed mortgage rate falls below 6% for the first time in seven weeks (5 October 2022 – 5.97%), borrowers who paused their home ownership plans, or indeed parked the idea of refinancing, may now be tempted to scrutinise the latest deals on offer.

“After the fiscal announcement [23 September 2022] the average two- and five-year fixed mortgage rates rose sharply, but they are edging further away from their daily peak [20 October 2022]. However, it is worth noting that rates could fall further still, but there is no clear answer as to how quickly that may be.

“Indeed, it’s been around two months since both the average two and five-year fixed mortgage rate breached 5% [30 September 2022], but today only a handful of lenders are offering sub-5% fixed deals. Borrowers may feel they have to be patient for a little while longer yet before they commit to a new fixed mortgage, or even wait until next year to see how the market recovers from the recent interest rate uncertainty.”