Mortgage rates fall at fastest pace in two years amid Iran volatility
- Fixed mortgage rates in the UK have experienced their fastest decline since October 2024, with average two-year and five-year fixes both falling to 5.52 per cent in June.
- This reduction is linked to a de-escalation of hostilities in the Middle East, which had previously caused rates to rise significantly.
- The market has also seen a reversal of the unusual trend where two-year fixed rates were more expensive than their five-year counterparts.
- Experts caution that renewed geopolitical tensions, upcoming inflation figures, and potential Bank of England decisions could slow or reverse these positive trends.
- Borrowers are advised to secure mortgage deals promptly, given the market’s volatility and the potential for rates to change quickly.
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