Five-year fixed-rate mortgages are available at below 4% for the first time since the disastrous mini-budget in September amid further signs the market is stabilising.

HSBC UK has cut its five-year fixed-rate mortgage deal for borrowers with a 40% deposit to 3.99%, subject to a £999 arrangement fee.

It is the first time since September 2022 that a five-year fixed-rate mortgage has been offered by HSBC at a rate below 4%. The deal is only available to homeowners who are remortgaging or those who are switching rates.

A number of mortgage deals were withdrawn from the market following the mini-budget last September and when mortgages returned they were priced at significantly higher rates.

However, in recent weeks there have been signs of the fixed-rate mortgage market settling down.

According to data provided by Moneyfacts.co.uk, the average five-year fixed-rate mortgage on the market at the start of January was 5.63%. But this fell to 5.2% at the start of February.

Rachel Springall, spokesperson for Moneyfacts.co.uk, said: “It’s encouraging to see fixed mortgage rates coming down for borrowers looking to secure a new deal.”

“Due to the unpredictable nature of the mortgage arena, it is imperative that both those looking to purchase a property or who wish to refinance seek independent advice from a broker to navigate the options available to them,” she added.