The Rightmove weekly mortgage tracker showed that declines were recorded at all loan to value (LTV) tiers since 25 July. Last week, the firm suggested that the average increases could be reaching their peak.
As of 31 July, the average five-year fixed rate at 60 per cent LTV was 5.82 per cent down 5.9 per cent on 25 July, while the average two-year fixed rate fell from 6.38 per cent to 6.3 per cent.
At 75 per cent LTV, the average two-year fixed rate rose marginally from 6.46 per cent to 6.47 per cent. Meanwhile, its five-year fixed counterpart fell from six per cent to 5.98 per cent.
The average rate for a two-year fixed mortgage at 85 per cent LTV was 6.65 per cent, down from 6.67 per cent and the average five-year fixed rate was 6.15 per cent, a drop from 6.18 per cent last week.
Drops were also recorded across high LTV mortgage rates, with the average two-year fixed rate at 90 per cent LTV coming to 6.77 per cent and the average five-year fix sitting at 6.18 per cent. These were both down from rates of 6.79 per cent and 6.24 per cent respectively.
At 95 per cent LTV, the average two-year fixed rate fell from 6.98 per cent to 6.94 per cent, while the average five-year fixed rate declined from 6.34 per cent to 6.26 per cent.
Rightmove also calculated that the average monthly mortgage payment on a typical first-time buyer type property, on a five-year fixed mortgage at 85 per cent LTV was now £1,253 per month, representing a £3 fall since last week.
Matt Smith, mortgage expert at Rightmove, said: “Average rates across five-year and two-year fixed products have seen their first weekly drop since mid-April, as the more positive economic news in recent weeks begins to filter through to the mortgage market and lenders tentatively begin to reduce rates.
“As previously seen, lenders are likely to be waiting for this week’s base rate announcement before any further action so they can act with a little more certainty – but without any market surprises, we expect rates to reduce further in the coming weeks and potentially accelerate depending on how positive the signs are.”
