Despite falling rates, the average five-year fixed mortgage rate is 5.63 per cent, up from 4.32 per cent a year ago, according to Rightmove figures,
The average two-year fixed mortgage is priced at 6.16 per cent, up from 4.44 per cent in the same period last year.
At 60 per cent LTV, an average two-year fixed rate is 5.82 per cent, with the lowest rate standing at 5.64 per cent. An average five-year fixed rate at the same LTV is 5.26 per cent, with the bottom-end of pricing coming to 5.09 per cent.
Within the 75 per cent LTV tier, the average two-year fixed rate is 5.97 per cent and the lowest rate is 5.53 per cent. Its average five-year fixed rate is 5.45 per cent and the cheapest rate is 5.53 per cent.
At 85 per cent LTV, the average two-year fixed rate is 6.24 per cent and the lowest rate is 5.84 per cent and the average five-year fixed rate is 5.69 per cent with the bottom-end rate coming to 5.24 per cent.
Within the higher LTV tiers, the average two and five-year fixed rate at 90 per cent LTV is 6.39 per cent and 5.82 per cent respectively, and at 95 per cent LTV this goes up to 6.55 per cent and 5.97 per cent apiece.
The lowest two and five-year fixed rate at 90 per cent LTV is 5.89 per cent and 5.40 per cent and at 95 per cent LTV the bottom rate comes to 6.24 per cent and 5.69 per cent.
The average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed, 85 per cent LTV mortgage, is £1,198 per month, an increase from £1,039 per month last year.
Base rate likely to be held after tomorrow
Rightmove’s mortgage expert Matt Smith said: “Today’s surprisingly positive inflation news will likely give the BoE more confidence heading into tomorrow’s base rate decision. While markets predict and have priced in a 0.25 per cent rise, which is still tomorrow’s most likely outcome, today’s news means further rises beyond this are now a lot less likely.
“Today’s news is against a backdrop of falling mortgage rates, that have now dropped for an eighth consecutive week. The pace of rate reductions accelerated last week as anticipated, as lenders responded to swap rate reductions with rate cuts and intensifying competition.”
He added: “Today’s news means it is likely that confidence will continue to increase amongst lenders in the coming weeks with the trajectory of rates remaining downward.
“The BoE accompanying commentary on the economy to tomorrow’s decision will likely have further impact on the direction and pace of change in mortgage rates in the near future.”