The Rightmove weekly mortgage tracker showed the average two-year fixed rate was 5.23 per cent as of 20 March, up from 5.22 per cent. There was also a small rise in the average five-year fixed rate from 4.84 per cent last week to 4.85 per cent over the same period.
At 60 per cent loan to value (LTV), the average two-year fixed rate was 4.69 per cent, up from 4.68 per cent, while the average five-year fixed rate stayed stable at 4.37 per cent.
The average two-year fixed rate came to 5.06 per cent at 75 per cent LTV, the same as last week, while the average five-year fixed rate saw a small change from 4.73 per cent to 4.74 per cent.
For a deal at 85 per cent LTV, the average two-year fixed rate increased from 5.21 per cent to 5.22 per cent, while the average five-year fixed rate also rose by 0.1 per cent to 4.79 per cent.
Similarly minor rises were recorded at higher-LTV bands too.
For a two-year fix at 90 per cent LTV, Rightmove’s data showed the average rate was 5.46 per cent as of today, compared to 5.44 per cent last week. For a five-year fix, the average rose from 4.98 per cent to 4.99 per cent.
At 95 per cent LTV, the average two-year fixed rate stood at 5.91 per cent, up from 5.9 per cent last week, while the average five-year fixed rate rose from 5.47 per cent to 5.48 per cent.
Inflation opening path for base rate reduction
Matt Smith, Rightmove’s mortgage expert, said: “Today’s inflation news is positive, and every day is one step closer to when we might see the first base rate reduction, and mortgage rates are likely to reduce before this.
“I don’t think this will change the course of the Bank of England’s decision on the base rate tomorrow, but I expect both the bank and homemovers will have some renewed optimism for the direction the economy and mortgage rates are heading in after today.”
Rightmove found that, based on a typical first-time buyer property on a five-year fixed mortgage at 85 per cent LTV, the average monthly payment was now £1,101 for new homeowners. This is up from £1,076 last year.
