Mortgage News
Average mortgage rates drop at rate ‘not seen for a while’ – Rightmove
Average two- and five-year fixed rates have fallen at a faster rate this week as the market prepares for a possible base rate cut.
According to the latest Rightmove figures, the average five-year fixed mortgage rate is set at 4.88%, down from 6.08% a year ago.
The average two-year fixed mortgage rate is priced at 5.27%, a decrease from 6.6% a year ago.
Last week, the average five-year fixed mortgage rate was 4.95% and the average two-year fixed mortgage rate was 5.34%.
At 60% loan to value (LTV), the average two-year fixed rate is 4.62%, with the lowest rate pegged at 4.46%. The average rate a year ago was 6.34%.
The average five-year fixed rate at this LTV tier is 4.21% and the cheapest rate is 4.04%. The average rate was 5.83% this time last year.
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Going up to 75% LTV, the average two-year fixed rate is priced at 5.11% and the bottom-most rate is 4.69%. The average rate a year ago was 6.42%.
The average five-year fixed rate at 75% LTV is 4.76% and the cheapest rate is 4.14%. The average pricing a year ago was 5.94%.
Within the 85% LTV tier, the average two-year fixed rate is 5.28% and the lowest rate is 4.87%. The average rate a year ago was pegged at 6.64%.
On the five-year fixed rate side, the average price is 4.92% and the bottom-most rate is 4.49%. The average rate a year ago was 6.12%.
Going up to 90% LTV, the average two-year fixed rate is 5.59% and the cheapest rate is 5.54%. The average rate a year ago was 6.94%.
The average five-year fixed rate is 5.13% and the lowest rate is 4.75%. The average pricing in the same period last year was 6.21%.
At 95% LTV, the average two-year fixed rate is 5.96% and the lowest rate is 5.54%. The average rate a year ago was 6.94%.
A five-year fixed rate is 5.48% on average and the bottom-most rate is 5.23%. The average price a year ago was 6.29%.
The average monthly mortgage payment on a typical first-time buyer type of property when taking out an average five-year fixed 85% LTV mortgage is £1,124 per month, down from £1,249 per month a year ago.
Matt Smith, Rightmove’s mortgage expert, said: “We’ve seen average mortgage rates drop at a pace not seen for a while this week, faster than many expected as lender competition hots up.
“The first sub-4% rate for those with larger deposits and prepared to pay a higher fee is the headline-grabber, but we’ve also seen some notable drops in rates in other LTV brackets, which should benefit more mass-market movers.
“It’s interesting to see this competition for business increase even before the base rate decision, and though there’s still only around a 50% chance the base rate will be cut next week, if the current positive market sentiment continues, we could see further mortgage rate cuts.”