According to the Rightmove weekly mortgage tracker, the average two-year fixed rate was 5.5 per cent, down from 5.54 per cent last week. Meanwhile, the average five-year fixed rate came to 6.01 per cent, down from 6.07 per cent.
Against last year, rates were higher than the respective averages of 5.32 per cent and 5.7 per cent.
Matt Smith, mortgage expert at Rightmove, said: “It’s now the tenth week that average rates have dropped, as the slow but steady downward trend of fixed mortgage rates continues.
“As more lenders begin to offer sub-five per cent rates, this is likely to demonstrate increasing confidence that swap rates, the underlying costs of fixed rate mortgages, will remain stable for lenders, meaning there may be more room for rates to fall, particularly for those with a smaller deposit.”
As of 3 October, the lowest available rate was 4.89 per cent for a five-year fix at either 60 or 75 per cent loan to value (LTV).
LTV breakdown
At 60 per cent LTV, the average rate for a two-year fixed mortgage was 5.61 per cent while the average five-year fixed rate was 5.07 per cent. This was compared to 5.71 per cent and 5.16 per cent respectively a week ago.
At 75 per cent LTV, the average two-year fixed rate came to 5.79 per cent and the average five-year fixed rate was 5.31 per cent. These represented reductions of 0.1 per cent and 0.04 per cent since last week.
The average two-year fixed rate for a mortgage at 85 per cent LTV came to 6.13 per cent, while the five-year fixed option was 5.58 per cent.
Compared to last week, this was a fall from averages of 6.17 per cent and 5.6 per cent respectively.
At 90 per cent LTV, the average two-year fixed rate was 6.2 per cent and a five-year fix was 5.66 per cent. A week ago, the average two-year fixed rate was 6.33 per cent and the average five-year fixed rate was 5.71 per cent.
The average two-year fixed rate at 95 per cent LTV was 6.42 per cent, while for a five-year fix this came to 5.86 per cent.
This was slightly higher than 6.41 per cent and 5.87 per cent last week.
Smith added: “We’re starting to see more attractive rates in some loan to value brackets than a year ago as we begin to compare rates with the post-mini Budget period, though this doesn’t take away the fact that mortgage costs are still much higher than most have been used to.
“Whilst there have been twists and turns, homebuyers are coming to terms with the fact that rates won’t be returning to the previous ultra-low levels any time soon. However, this continued stability can at least give the many people still looking to move more certainty about what they can afford, and the type of mortgage offer they might expect.”
