Mortgage rates fall to all time lows following base rate cut

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Average variable and fixed mortgage products rates fell to record low rates in August, almost immediately following the drop in the base rate.

According to the latest Moneyfacts UK Mortgage Trends report, the Bank of England’s move to drop the base rate to 0.25 per cent in August meant two-year tracker’s fell by 0.19 per cent from 2.13 per cent in July to the lowest point on record of 1.94 per cent.

The fixed rate sector also hit record lows, with two-year products dropping 0.4 per cent to 2.44 per cent and five-year fixes falling 0.03 per cent to another record of 3.05 per cent.

The BOE kept the base rate unchanged this month, but hinted that it would cut the rate again before the end of the year in light of the current post-Brexit economic situation.