According to Rightmove, pricing reductions are being seen at all LTV tiers, with two-year fixed rate starting at 4.5 per cent at 60 per cent LTV and the five-year fixed rate at the same tier coming to 4.17 per cent.
All the average mortgage rates cited presuppose a product fee of £999.
This is a fall of 0.04 per cent respectively compared to the previous week but is up from 2.28 per cent for a two-year fixed rate at 60 per cent LTV and 2.34 per cent for its five-year fixed rate equivalent a year ago.
Higher LTV tiers see bigger drops
At higher LTV tiers, reductions of up to 0.06 per cent have been applied on average, with its two-year fixed rate at 85 per cent LTV falling 0.06 per cent to 4.89 per cent compared to the previous week.
At 90 per cent LTV, the two-year fixed rate has contracted by 0.06 per cent to 5.14 per cent while its five-year fixed rate at the same LTV tier has decreased by the same amount 4.75 per cent.
Rightmove’s mortgage expert Matt Smith says: “Average mortgage rates have continued to fall across all loan-to-value ranges for the fifth consecutive week. Due to this sustained period of rate falls, it’s now clear that this is no longer simply due to the March base rate decision, and that lenders are actively competing for business.
“Competition is strongest in the traditional first-time buyer LTV ranges. Average rates have fallen by 0.06 per cent week-on-week for both two and five-year fixed rates at 90 per cent LTV, and two-year fixed rates at 85 per cent LTV have also fallen by 0.06 per cent. Meanwhile, five-year fixed rates at 85 per cent LTV reduced by 0.04 per cent this week.
“It is likely that we’ll see a continuation of the current trend of reducing rates in the immediate term, as lenders vie for business in the Spring buying season.”
