According to Rightmove, at 60 per cent loan to value (LTV), the average two-year fixed rate is 6.01 per cent, with the lowest rate coming to 5.75 per cent. This is up from 3.59 per cent a year ago.
An average five-year fixed rate at 60 per cent LTV is priced at 5.36 per cent, with the lowest rate at this LTV and term coming to 5.17 per cent. The average rate a year ago was 3.62 per cent.
Mid-tier pricing
Within the 75 per cent LTV tier, the average two-year fixed rate is 6.17 per cent and the average five-year fixed rate is 5.57 per cent. The lowest two-year fixed rate was 5.81 per cent and the lowest five-year fixed rate was 5.18 per cent.
Around a year ago, a two-year fixed rate at the same LTV tier was 3.71 per cent and 3.74 per cent for a five-year fixed rate.
At 85 per cent LTV, a two-year fixed rate is priced at 6.37 per cent, with the lowest rate coming to 5.99 per cent. The average rate a year ago was 3.83 per cent.
For five-year fixed rate, the average rate stands at 5.77 per cent, with the lowest rate priced at 5.37 per cent. The average rate a year ago was 3.88 per cent.
Higher tier rates
Within the higher LTV tiers, at 90 per cent LTV the average two-year fixed rate is 6.51 per cent and the lowest rate is 6.18 per cent. This time last year the average rate was 3.98 per cent.
The average five-year fixed rate at 90 per cent LTV is 5.9 per cent, with the lowest rate coming to 5.5 per cent. A year ago, the average rate was 4.02 per cent.
The average two-year fixed rate at 95 per cent LTV is 6.62 per cent and the lowest rate is 6.34 per cent. The average rate a year ago was 4.35 per cent.
On the five-year fixed rate side at 90 per cent LTV, the average rate is priced at 6.04 per cent and the lowest rate is 5.77 per cent. The average rate a year ago is 4.35 per cent.
First-time buyer rates
The average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed at 85 per cent LTV is £1,198 per month, up from £993 per month a year ago but down from £1,204 last week.
Rightmove’s mortgage expert Matt Smith said: “It’s been another week of some stability in the mortgage market, with average rates dropping at the same pace as last week and continuing to slowly head downwards for now.
“While the pace of average rate drops has held steady, falls in the lowest rate available have accelerated quite significantly this week across many LTV ranges, reflecting more rate cuts from major lenders and some competition for mortgage business continuing to build.”
He pointed to an example of a five-year fixed rate with a 15 per cent deposit that can secure a rate of 5.27 per cent, compared to 5.37 per cent last week.
“While this is, of course, still higher than last year, it further shows the more positive rate trends in recent weeks, and the importance for those looking to take out a mortgage soon in looking around for the best deal, as the lowest available rate that works for them could in some cases be notably lower than overall averages,” Smith added.
