This is according to Moneyfactscompare.co.uk, who declared that its average mortgage rate stood at 4.99% yesterday – the same level as it was on September 3.

The Moneyfacts Average Mortgage Rate is calculated from all on-sale, core market, fixed and variable tracker deals.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, commented: “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.”

Mary-Lou Press, president of NAEA Propertymark, commented: “It’s extremely positive to see a far more competitive lending market than only twelve months back. Consumers have faced a doubled-sided challenge in recent years with elevated inflation and heightened base rates.

“Although we have seen three base rate cuts throughout the year to date, affordability has remained challenging for many. It will be a case of all eyes on the Bank of England on Thursday, as the next base rate decision is made. 

“Also, with strong rumours of a potential overhaul for those in England and Northern Ireland regarding Stamp Duty, there will be close watch on the chancellor, as fiscal plans for the forthcoming year are shared within the Autumn Budget in only a few weeks time too.”