According to the latest Rightmove figures, the average five-year fixed rate is 5.86 per cent and the average two-year fixed rate is 6.46 per cent. This is up from 3.85 per cent and 3.74 per cent respectively a year ago.
Lower LTV
At 60 per cent LTV, the average two-year fixed rate is 6.13 per cent, with the lowest rate on the market standing at 5.9 per cent.
For five-year fixed rates, the average rate is 5.53 per cent, with the bottom rate coming to 5.28 per cent.
At 75 per cent LTV, the average two-year fixed rate is 6.32 per cent and the lowest rate is 5.91 per cent and the average five-year fixed rate is 5.73 per cent and the smallest rate is 5.29 per cent.
Within the 85 per cent LTV tier, the average two-year fixed rate was priced at 6.5 per cent and the lowest rate was 6.09 per cent. The average five-year fixed rate is 5.92 per cent and the bottom rate pegged at 5.44 per cent.
Higher LTV
On the higher LTV side, the average two and five-year fixed rate at 90 per cent LTV is 6.63 per cent and 6.01 per cent respectively. The lowest two-year fixed rate came to 6.26 per cent and for five-year fixed rates this was 5.6 per cent.
At 95 per cent LTV, the average two-year fixed rate was 6.86 per cent and average five-year fixed rate was 6.11 per cent. The minimum rates at 95 per cent LTV for a two-year fixed rate was 6.34 per cent and 5.87 per cent for a five-year fixed rate.
The report continued that the average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed rate at 85 per cent LTV is £1,226 per month, up from £991 per month a year ago but down from £1,252 last week.
Inflation will determine rate trajectory
Rightmove’s mortgage expert Matt Smith says: “Rates currently continue to move in the right direction for new borrowers, with average five-year rates dipping below six per cent for the first time in a month.
“Five-year products have reduced by an average of 0.2 per cent and two-year products have dropped by an average of 0.1 per cent over the past week, as the full effect of recent lender rate cuts starts to hit the market.”
He added: “This week’s inflation data will be key in determining if the current trend continues or is brought to somewhat of a halt.
“The market remains volatile, and things can quickly change if presented with any surprising data. However right now, the downward trend highlights the desire from lenders to become more competitive and attract one of the many motivated buyers we can see are still active in the property market.”
