Rightmove’s weekly mortgage tracker data showed the average two-year fixed rate came to 5.44% as of 22 May, compared to 4.92% last year.
Meanwhile, the average five-year fixed rate was 5.05% as of today, up on the average of 4.59% a year ago.
Rates have also crept up since last week with these being higher than the averages of 5.42% and 5.02% respectively.
However, Rightmove predicted that there could soon be reductions if today’s inflation figures lead to a reduction in the Bank of England’s base rate.
Matt Smith, mortgage expert at Rightmove, said: “Today’s inflation drop feels like an important milestone on the road to the first base rate cut. There’s been some to-ing and fro-ing over whether we’ll see a summer base rate cut, but today’s news will likely reinforce some of the positive words coming from the Bank of England in recent days.
“Mortgage rates are still higher than this time last year, but hopefully this is the first domino to fall as we head towards lower mortgage rates in the second half of the year.”
Mortgage rate changes across LTVs
The average mortgage rate for a two-year fix at 60% loan to value (LTV) as of today was 4.89%, a small fall on last week’s average of 4.9%. For a five-year fix at the same tier, the average rate decreased from 4.53% to 4.49% this week.
The lowest mortgage rates available at this tier were 4.75% and 4.34% respectively.
At 75% LTV, the average two-year fixed mortgage rate was 5.31%, up on last week’s average of 5.26%, and the average five-year fixed rate rose from 4.89% to 4.95%.
As of 22 May, the lowest rates at this level were 4.83% and 4.44% respectively.
The average two-year fixed rate came to 5.46% at 85% LTV, while the average five-year fixed rate was 5.03%.
These were respectively higher than last week’s averages of 5.39% and 4.95%.
At 85% LTV, the lowest two-year fixed rate on the market was 4.99% while the cheapest five-year fix had a rate of 4.59%.
At 90% LTV, the average two-year fixed rate was 5.66%, down from 5.67% last week, while the average five-year fixed rate came to 5.19% compared to 5.2% a week ago.
The lowest mortgage rates available at this level were 5.11% for a two-year fix and 4.79% for a five-year fix.
At 95% LTV, the average two-year fixed rate was 6.1%, unchanged from last week. The lowest available rate as of today was 5.52%.
The average five-year fixed rate was also the same at 5.7%, while the cheapest rate came to 5.15%.
Rightmove calculated that for a first-time buyer purchasing a home worth £228,003 on an average five-year fixed mortgage at 85% LTV, the monthly payment would be £1,136. This was up compared to £1,076 a month last year.
