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Average mortgage rates drop marginally as market steadies – Rightmove

  • 08/08/2023
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Average mortgage rates drop marginally as market steadies – Rightmove
There were small declines in average mortgage rates compared to last week as the property market showed signs of settling, data from a property portal found.

The Rightmove weekly mortgage tracker showed the average rate for a two-year fixed mortgage at 60 per cent loan to value (LTV) was 6.24 per cent today, down from 6.3 per cent as of 1 August. A five-year fix at the same tier had an average rate of 5.77 per cent, down from 5.82 per cent last week. 

At 75 per cent LTV, the average two-year fixed rate is 6.42 per cent, slightly lower than 6.47 per cent a week ago. The five-year fixed alternative is priced at 5.98 per cent, the same as the average last week. 

For a deal at 85 per cent LTV, a two-year fix is priced at 6.61 per cent, while a five-year fix is 6.14 per cent. These were small drops from 6.65 per cent and 6.15 per cent respectively. 

A two-year fix at 90 per cent LTV had a rate of 6.74 per cent on average, which was down from 6.77 per cent last week. For a five-year fix at the same tier, the average rate had fallen from 6.18 per cent to 6.16 per cent. 

At 95 per cent LTV, the average rate for a two-year fix was 6.94 per cent, unchanged from the previous week. 

Meanwhile, the average five-year fixed rate for small deposit borrowers decreased from 6.26 per cent to 6.24 per cent. 


Hope for a period of stability

Matt Smith, mortgage expert at Rightmove, said: “The market has remained relatively calm since the base rate increase, and those looking to take out a mortgage soon will be hoping this period of some stability continues for as long as possible. As expected, despite the base rate rise, fixed rate mortgage deals have continued to tentatively trend downwards and based on the latest swap rates, are likely to continue to do so slowly, barring any market surprises.  

“A settled market provides more confidence and certainty, and next week’s inflation data will be key to setting the tone for the following weeks. If some positive news means confidence can continue to build, lenders may feel they can get more competitive with their rates to attract the many motivated buyers still in the market to move.” 

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