Confidence gains as mortgages lower

5-Year mortgages have fallen below 6% for the first time on Tuesday, since early October. British lenders have seen the rate they use to price mortgages recover since the crash following Truss' mini-midget in September. In addition 2-year mortgages have fallen to just 6.13%, which is the lowest since October 6th. So what does this mean? Very simply: it increases the affordability of assets making buying homes more attractive, in turn house prices increase leading to a rise in personal wealth - this injects confidence into the economy as it encourages consumer spending. So although 5.95% may seem little, it shows a step forward, and very slightly lightens the very heavy load on homeowners in Britain.

By Jake Landsberg