The better inflation figures in the UK have led to a decrease in theaverage two-year fixed mortgage rates for the first time in two months,BBCreported.
The mortgage rate fell to 6.79%, its first drop since May 27, down from 6.81% on Wednesday, as per the figures fromMoneyfacts.
Bothtwo and five-year fixed-rate deals have dropped in hopes that the Bank of Englandmay not raise interest rates as much as expected before.
The five-year rate fell by6.31% as compared to yesterday's number of6.33%.
Over 40,000 people were expected to renew deals at higher costs after moving offexisting fixed deals between July and September.
Since December 21, the interest rates have been raised 13 times by the Bank of England in a bid to restrict the increasing prices.
However, inflation had fallen from 8.7% in the year to May to its lowest level in more than a year, the figures showed on Wednesday.
But it still remainsalmost four times higher than the bank's target of 2%, hence, the bank will now need to performfewer base interest rate hikes to achieve the target.
The rates were expected to exceed 6% but are now estimated at5.75%, according to CNN.