The Rightmove weekly mortgage tracker found that the average two-year fixed rate across all loan to value (LTV) tiers was down by 0.23 per cent annually at 5.65 per cent. Meanwhile, the average five-year fixed rate was 0.41 per cent lower than last year at 5.21 per cent.
This is also down on the previous week’s averages of 5.74 per cent for a two-year fix and 5.3 per cent for a five-year fix, as recorded on 14 November.
According to Rightmove, the average two-year fixed rate for a mortgage at 60 per cent LTV is now 5.07 per cent compared to 5.17 per cent last week. For a five-year fix, the average rate at the same tier fell from 4.78 per cent last week to 4.69 per cent.
At 75 per cent LTV, the average two-year fixed rate dropped from 5.59 per cent to 5.5 per cent, while the typical five-year fixed rate declined from 5.2 per cent to 5.12 per cent.
Declines were also recorded at 85 per cent LTV, where the average two-year fixed rate fell from 5.87 per cent to 5.77 per cent and the average five-year fixed rate decreased from 5.35 per cent to 5.29 per cent.
People with smaller deposits are also seeing an overall reduction in mortgage pricing.
Rightmove’s data showed that at 90 per cent LTV, the average two-year fixed rate was 5.33 per cent, compared to last week’s 5.4 per cent. Meanwhile, the average pricing for a five-year fix came to 5.85 per cent, which was down from 5.91 per cent.
At 95 per cent LTV, the average two-year fixed rate was recorded at 6.03 per cent, down from 6.2 per cent, while the average five-year fixed rate was 5.56 per cent, down from 5.73 per cent.
This has resulted in lower potential costs for the typical first-time buyer too.
Based on a property worth £223,426, Rightmove calculated that a five-year fix at 85 per cent LTV would mean monthly mortgage payments of £1,143, compared to £1,178 last year. This is also a slight reduction on the average payment of £1,149 a month recorded last week.
