Homebuyers are seeing mortgage rates fall as the lending market continues to recover from the chaos caused by the Mini-Budget.

Experts are now advising bank customers to look for a tracker deal as fixed-rate mortgages are likely to become cheaper in the next few weeks.

The average five-year fixed rate offers are now below 6% for the first time in seven weeks, at 5.95%, according to consumer data group Moneyfacts.

For two-year fixed-rate mortgages, the lowest is now just above 5% with Skipton Building Society offering 5.07%.

The total number of mortgage deals on offer plummeted by more than 40% in the days after September’s Mini-Budget.

Lenders concerned about possible interest rate rises pulled their products with some suspending their entire mortgage range.

The Bank of England raised interest rates by 0.75% from 2.25% to 3% earlier this month in the highest one-day rise for 30 years.

Room for improvement

Rachel Springall, finance expert at Moneyfacts, says: “Although fixed mortgage rates are falling, there is still room for improvement as there are only a handful of lenders offering sub-5% fixed deals.”

“I don’t think the trend is finished yet.”

Ray Boulger, senior manager at brokers John Charcol (pictured), tells The Neg that the best five-year fixed rate deals were now around 5% for buyers with a large deposit.

He says rates may soon fall as low as 4.5% for a five-year arrangement with a 60% LTV (loan to value), so it was worth waiting. “I don’t think the trend is finished yet,” he says.

He advises buyers to take a tracker mortgage in the meantime, with the option to switch to a fixed rate.