Mortgage News
Average five-year fixed mortgage rate below 5% for first time since May – Rightmove
The average five-year fixed mortgage rate has fallen below 5% for the first time in two months, data from a property firm showed.
The Rightmove weekly mortgage tracker found the average five-year fixed mortgage rate was now 4.99%, as of 3 July, down from an average of 5.02% a week ago.
Compared to last year, the average five-year fixed mortgage rate was lower than the average of 5.69% in 2023.
The average two-year fixed rate also fell from 5.42% last week to 5.37% this week and was down from 6.17% last year.
These reductions come after Accord said it was making the most of the current stable market and lowering rates across its residential and buy-to-let mortgage ranges.
At the same time, Rightmove’s data found that the average monthly mortgage payment for a first-time buyer had also fallen annually from £1,203 to £1,131. This is based on a mortgage at 85% loan to value (LTV) against a typical first-time buyer home worth £227,757 over 25 years.
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Mortgage rate movements across LTV tiers
As of 3 July, the average two-year fixed mortgage rate for a deal at 60% loan to value (LTV) was 4.82%, down from 4.84% last week. Week-to-week, the average five-year fixed rate at the same tier fell from 4.42% to 4.39%.
Respectively, these rates came to 5.85% and 5.42% a year ago.
At 75% LTV, the average two-year fixed mortgage rate fell from 5.25% to 5.22% over the week, while the average five-year fixed rate moved from 4.88% to 4.86%.
Annually, these were both down from averages of 6.03% and 5.56% respectively.
The average two-year fixed rate at 85% LTV was 5.38% as of today, while the average five-year fixed rate was 4.99%. Both averages were lower than the respective rates of 5.42% and 5.01% last week, and 6.17% and 5.68% a year ago.
The average two-year fixed rate came to 5.65% at 90% LTV, down from 5.68% last week. This was also lower than the average of 6.28% a year ago. Meanwhile, the average five-year fixed rate was 5.16% as of 3 July, down from 5.19% on a weekly basis and 5.82% annually.
At 95% LTV, the average two-year fixed rate was 6.11%, while the average five-year fixed rate was 5.67%.
Both were lower than last week’s respective rates of 6.12% and 5.74%. These were also respectively down on rates of 6.75% and 6.08% a year ago.