Average UK Mortgage Rate Is Below 5% for First Time Since Truss

The average interest rate on a common UK mortgage has dropped below 5% for the first time since former prime minister Liz Truss’ calamitous mini-budget in 2022.

Data from Moneyfacts, a website comparing financial products, showed Wednesday that the average rate on a two-year fixed deal for homeowners had dipped to 4.99%. The rate was last below 5% on Sept. 29, 2022, before Truss’ announcement of £45 billion ($61 billion) of unfunded tax cuts sent borrowing costs spiralling.