Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loan, also declined this week.

The housing market still remains tough, with a limited supply of homes for sale helping to prop up prices and squeeze affordability even more.

Average two-year fixed mortgage interest rate drops below 6% for first time in six months - The average rate soared to as high as 6.81% in July

Mortgage rates surged in the wake of Liz Truss’s bungled mini-Budget last year, and they had already been on the rise after a wave of rate hikes by the Bank of England to cool inflation

Mortgage rates on a typical two-year fixed deal have fallen below 6% for the first time since mid-June, according to Moneyfacts. The financial information service said the average rate was now 5.99%.

The average two-year fixed-rate homeowner mortgage deal on the market dipped to 5.99% on Friday, according to Moneyfactscompare.co.uk.

The UK’s average two-year mortgage rate has dipped below 6% for the first time in nearly six months. The rate now sits at 5.99%, falling from 6.01% the day before, according to Moneyfactscompare.co.uk.

Several lenders have cut mortgage rates further this week, as markets predict that the base rate will stay at 5.25 per cent before falling towards the middle of next year. When wi

The average interest rate for a fixed two-year mortgage has fallen below six per cent for the first time since June. Moneyfacts has reported the average two-year fixed rate is now 5.99 per cent, down from the peak of 6.