The average of the lowest fixed-rate mortgages has fallen by more than 50 basis points since the beginning of November, as market expectations for rates have eased since the spike caused by the mini-budget, according to data from L&C Mortgages.  

Its remortgage tracker shows that the average of low loan-to-value two- and five-year remortgage rates from the top ten lenders have fallen.   

Average two- and five-year rates hit 5.90% and 5.67%, respectively, at the beginning of November, but have now dropped to 5.38% and 5.07%, respectively. But at the same time, standard variable rates continue to climb with the top ten average now at 6.30%.  

A borrower taking a typical £150,000 repayment mortgage over 25 years at the average five-year rate could benefit from payments of £53 per month less than at the beginning of the month. That would add up to a saving of more than £3,200 over five years.   

The data comes after chancellor Jeremy Hunt calmed international debt markets last month, by largely reversing former chancellor Kwasi Kwarteng’s tax-cutting mini-budget on 23 September, which saw the number of products on the market fall sharply while remaining loan prices jumped.      

The lender “urges” customers to take advantage of its free rate check service to see whether there could now be a better rate on offer than just a few weeks ago.   

It says it’s also important to take account of fees, as using a no-fee adviser can add additional savings over a traditional, fee-charging broker.   

Broker fees will often be £500, but could charge up to 1% of the mortgage, potentially amounting to thousands of pounds, the lender points out.  

It adds that switching from the average SVR to the average five-year fixed rate could cut annual outgoings by more than £1,330.   

The lender says: “That saving could increase further if the Bank of England continues to raise rates, as many anticipate.”  

L&C Mortgages associate director David Hollingworth adds: “The reduction in fixed rates will be welcome news to borrowers reeling from the impact of the mini-budget. Although base rate is expected to continue its climb, falling fixed rates will offer squeezed borrowers the chance of some budgeting certainty against an uncertain backdrop.   

He points out: “Homeowners could already make substantial savings compared with the rates that were on offer only a few weeks ago following the mini-budget.   

“Those that sought to grab a rate in the panic should review their rate to make sure it still offers the best option now the market is shifting. Securing a better rate now doesn’t close the door to reviewing the options and good advice should help keep borrowers abreast of change without incurring additional cost.”