Rightmove’s weekly mortgage tracker found that the average five-year fixed rate was now 4.72 per cent, compared to 4.69 per cent last week. Meanwhile, the average two-year fixed rate was recorded at 5.08 per cent, up from 4.97 per cent a week ago.
This follows recent mortgage rate increases from the likes of Natwest, Nationwide and Santander, with the latter marking the disappearance of sub-four per cent rates from the market.
These changes to mortgage rates came as swap rates continued to climb. As of 19 February, the two-year SONIA swap rate was 4.5 per cent and the five-year swap was 3.9 per cent. This compared to respective swap rates of 4.2 per cent and 3.6 per cent in January.
Some rates down on last year
In some cases, the average mortgage rate was lower than last year, Rightmove’s data showed.
For a 60 per cent loan to value (LTV) deal, the average two-year fixed rate was 4.5 per cent, down from 4.55 per cent last year. The five-year fixed rate averaged 4.19 per cent, compared to 4.23 per cent last year.
A two-year fix at 75 per cent LTV was found to have an average rate of 4.9 per cent, higher than 4.73 per cent a year ago. The five-year fixed rate at the same tier was also higher, at 4.61 per cent compared to 4.41 per cent.
For an 80 per cent LTV mortgage fixed for two years, the average rate rose from 5.02 per cent last year to 5.08 per cent this year. The average five-year fixed rate was relatively unchanged, at 4.67 per cent this year compared to 4.68 per cent last year.
At 90 per cent LTV, the average two-year fixed rate was 5.31 per cent, down from 5.36 per cent last year, and the average five-year fixed rate was also lower, at 4.86 per cent compared to 4.89 per cent.
Average rates were higher for borrowers in need of a 95 per cent LTV deal, with a two-year fixed rate coming to 5.79 per cent, up from 5.64 per cent. The average five-year fixed rate at the same tier rose from 5.15 per cent to 5.35 per cent.
The average monthly mortgage payment for a first-time buyer is higher than last year, with this coming to £1,081. Based on a five-year fixed mortgage at 85 per cent LTV, this was up from a payment of £1,074 per month last year.
