L&C looked at the average of the top ten lenders’ best rates on offer to homebuyers and remortgage borrowers on the morning of the mini-budget, one month after and where they sit now.

One month after the mini-budget the average rates had risen sharply.  Rates have now eased back as the outlook for interest rates has brightened.  In the case of the lowest average two-year fixed rate for homebuyers, mortgage rates are now over two percentage points lower than where they spiked to in October 2022, now at 4.13% compared to 6.16%.

However, the average rates for those buying with a smaller 10% deposit are still slightly higher than before the mini-budget.  For example, the average two year fixed rate at 90% LTV is now 5.06% compared to 4.57% in September 2022.

Commenting on the data, L&C associate director David Hollingworth said: “The mortgage market has seen bouts of huge volatility in the last two years so it’s encouraging for borrowers to see that rates are now in a much better place.  Even though the base rate is more than twice its level prior to the mini-budget, mortgage rates are largely back to where they were.”

He added: “More importantly the market has shown much more stability and is a world away from the skyrocketing rates post mini-budget, allowing homemovers and remortgage borrowers to look ahead with greater certainty.”