UK mortgage rates falling but fees rising as lenders compete for business
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UK mortgage rates are becoming more competitive, but fees are increasing. Lenders are trying to attract business despite high interest rates.
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Average 5-year fixed rates have fallen from 6.37% to 5.87% since August, but the cheapest is just 4.64%.
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Over 2 million homeowners will see deals expire in 2023-24. Mortgage approvals are down 30% from 2019.
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Lenders may offer lower rates but higher fees. Skipton launched 3.35% fixes with 5% fees, Virgin Money has a 5.09% deal with 1% fee.
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Rates unlikely to fall much further until base rate drops. Borrowers shouldn't hold out for dramatically better deals right now.