Rightmove’s mortgage expert Matt Smith said: “Following the positive news on inflation and the Bank’s decision to hold the base rate, we have seen swap rates, the underlying costs of fixed rate mortgages, stabilise.
According to the latest figures from the online portal, the average five-year fixed rate is 5.54 per cent and the average two-year fixed rate is 6.07 per cent.
The firm broke down the average and lowest rates for the week across a variety of different tiers.
At 60 per cent loan to value (LTV), an average two-year fixed rate is 5.72 per cent and the lowest quoted is 5.43 per cent. An average five-year fixed rate at the same LTV tier is 5.16 per cent and the bottom rate is 4.94 per cent.
Going up to 75 per cent LTV, the average two-year fixed rate is 5.89 per cent and the lowest rate for this term is 5.48 per cent. The average five-year fixed rate at the same LTV is 5.35 per cent, and the smallest rate is 4.94 per cent.
Within the 85 per cent LTV tier, an average two-year fixed rate is 6.17 per cent and the lowest rate is 5.84 per cent. The average five-year fixed rate is 5.6 per cent and the bottom rate is 5.18 per cent. Last year, the average rate was 4.38 per cent.
Jumping to 90 per cent LTV, the average two-year fixed rate is 6.33 per cent and the smallest rate is 5.93 per cent. The average five-year fixed rate is 5.71 per cent and the bottom rate quoted was 5.38 per cent.
At 95 per cent LTV, the average two-year fixed rate is 6.41 per cent and the lowest rate is 6.24 per cent. The average five-year fixed rate is 5.87 per cent, the smallest rate is 5.69 per cent.
Rightmove: ‘A welcome respite for movers’
Smith added: “The important takeaway from last week for those looking to take out a mortgage soon is that the expectation that the base rate has now peaked is now the predominant view of the market, although there is still a sizeable but decreasing risk that we may see one more increase this winter.
“As we approach the final quarter of this year, we are likely to see continued stability in the mortgage market persist with rates continuing to gradually drop and more lenders likely to offer sub-five per cent deals.
“After what has been a rollercoaster twelve months for mortgage rates since the mini Budget, this will be welcome respite for homemovers after what continues to be a difficult adjustment from the prolonged period of ultra-low rates”
