The Times, Ask the Expert, Money Section: My new mortgage rate is 4.17%. Is that a good deal?

Our MD Adrian Anderson is the go-to "Ask the Expert- Mortgage Guru" for The Times , Money section, providing valuable insights into readers' most pressing mortgage questions.

We are coming up to remortgage and have been offered a five-year rate of 4.17 per cent. We last remortgaged in October 2022 amid the mini-budget mayhem to a rate of 5.87 per cent. So the new rate is cheaper but I know it is not the lowest on the market. To us 4.17 per cent seems high for five years.

Is this now a good deal? Maybe we were being naive but we were expecting something a bit above 3 per cent. Adrian says:

"The markets have calmed considerably since the mini-budget turmoil in the autumn of 2022 and mortgage rates are lower. While interest rates went up significantly as the Bank of England tried to combat inflation, their trajectory is now downward. Last month the Bank’s base interest rate was cut for the first time in four years — from 5.25 per cent to 5 per cent. Indicators of future rates suggest more reductions and fixed mortgage rates have reduced too, spelling good news for borrowers. You were expecting a rate just above 3 per cent, but the lowest five-year fixes for borrowers remortgaging with 40 per cent equity in their property are around 4 per cent. The rate you have been offered is close to the market-leading rates but I have some tips that may help you to secure a slightly cheaper deal."

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