Karen Noye, mortgage expert at Quilter, said: “Currently, some lenders offer deals around the 4% mark, a stark contrast to the 5% or higher rates seen in the immediate aftermath of the 2022 mini-budget and beyond.
“This reduction in rates has enabled buyers to secure larger mortgages, making previously unaffordable properties more attainable and boosting buyer confidence.”
However, Ms Noye added that the cost of borrowing was still out of reach for many, especially first-time buyers.
On Monday, the average rate on a two-year fixed rate mortgage was 5.38%, according to the financial information service Moneyfacts. It said the average for a five-year fixed deal was 5.05%.
Halifax said that despite recent cuts in mortgage rates, “housing costs remain a challenge for many”.
According to the lender, the typical first-time buyer is now buying a property priced at £232,769, which is the highest price since May this year.
However, this is still around £1,000 less than the average amount a first-time buyer was paying two years ago.
Halifax’s house price data is based on its own mortgage lending, which does not include buyers who purchase homes with cash, or buy-to-let deals. Cash buyers account for about a third of housing sales.
