The Rightmove weekly mortgage tracker showed that as of 7 November, the average rate for a two-year fixed deal was 5.8 per cent compared to 6.19 per cent in 2022. The average five-year fixed rate has also fallen from 5.92 per cent last year to 5.35 per cent this week.
The firm said the average monthly mortgage payment for a first-time buyer had also decreased compared to last year.
Based on a five-year fixed mortgage taken out on a property worth £224,263 at 85 per cent loan to value (LTV), the average payment on a 25-year term would be £1,163 a month compared to £1,222 last year.
Average rates were lower across all lending tiers, Rightmove’s data showed.
At 60 per cent LTV, the average two-year fixed rate came to 5.35 per cent, down from 5.96 per cent, while the average five-year fixed rate was 4.94 per cent, down from 5.7 per cent.
The average two-year fixed rate at 75 per cent LTV was 5.55 per cent, lower than 5.98 per cent in 2022 and the average five-year fixed rate at that tier came to 5.15 per cent down from 5.7 per cent.
Compared to last year, the average two-year fixed rate at 85 per cent LTV fell from 6.23 per cent to 5.94 per cent. The average five-year fixed rate declined from 5.95 per cent to 5.43 per cent.
Reductions were noted at higher LTV tiers too, as the average two-year fixed rate at 90 per cent LTV was 5.5 per cent, down from 6.11 per cent while the average five-year fixed rate came to 6.03 per cent compared to 6.38 per cent in 2022.
For those with a five per cent deposit, the average two-year fixed rate for a 95 per cent LTV came to 6.22 per cent this week compared to 6.57 per cent last year. On a longer five-year fixed term, this was at 5.75 per cent compared to 6.15 per cent.
