Mortgage rates below 5% for first time since Truss budget
The figures, the average two -year mortgage ratio, in September 2022 for the first time since the mini budget of former Prime Minister Liz Truss fell below 5%.
According to Moneyfacts, the ratio, which describes Homabuyers as a “symbolic turning point” and lenders “more aggressive competition” fell to 4.99%.
Interest rates have been cut five times since last August, but at the last meeting of the Bank of England, the divided vote between the policy makers asked questions about whether there would be another decrease this year.
A Moneyfacts spokesman said that although the mortgages followed the “mood music” determined by the bank’s ratio deductions, it is low.
According to Moneyfacts, the borrowing cost is still “far above the rock bottom rates of the years before the mini budget”.
Introduced by Truss’s short -lived chancellor Kwasi Kwarteng, the mini budget released £ 45 billion in unfamiliar tax cuts, England causes market turmoil.
It increased the cost of the British government’s borrowing, which entered the mortgage rates. Until July 2023, the cost of borrowing of mortgages It has increased to its highest levels since the 2008 financial crisis.
