Mortgage News
Average fixed rates continue steady downward trajectory – Rightmove
Average mortgage rates have continued to move downwards, with the anticipation of more cuts following the expected base rate cut later this year.
According to Rightmove’s latest figures, the average five-year fixed mortgage rate is now 4.95%, down from 6.02% a year ago.
The average two-year fixed mortgage rate is now 5.34%, a decrease from 6.5% a year ago.
The average two-year fixed rate last week was 5.35% and the average five-year fixed rate was 4.99%.
At 60% loan to value (LTV), the average two-year fixed rate is 4.74%, with the lowest rate coming to 4.49%. This compares to an average two-year fixed rate of 6.35%.
The average five-year fixed rate at this LTV is 4.31%, while the cheapest rate is 4.08%. The average rate a year ago was 5.88%.
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Going up to 75% LTV, the average two- and five-year fixed rates are 5.17% and 4.81% respectively, with the bottom-most rates coming to 4.72% and 4.36%.
The average rates a year ago came to 6.36% for a two-year fixed rate and 5.87% for a five-year fixed rate.
At 85% LTV, the average two-year fixed rate is 5.34% and the five-year fixed rate is 4.95%. The lowest two-year fixed rate is 4.87%, and for the five-year fixed rate, this is 4.52%.
The average two-year fixed rate at this LTV tier last year was 6.52%, and the five-year fixed rate came to 6.02%.
Within the higher-LTV tiers, the average two-year fixed rate at 90% LTV is 5.63% and the lowest rate is 5.19%. The average a year ago was 6.59%.
For a five-year fixed rate, the average five-year fixed rate is priced at 5.14% and the cheapest rate is 4.75%. The average rate a year ago was 6.11%.
At 95% LTV, the average two- and five-year fixed rates came to 6.18% and 5.67%, with the bottom-most rates pegged at 5.54% and 5.23%.
The average rates a year ago were 6.92% for a two-year fixed rate and 6.38% for a five-year fixed rate.
Matt Smith, Rightmove’s mortgage expert, said: “As we get closer to the likely base rate cut, stability in the economy is exactly what we need to keep plans on course.
“Although there is debate around the timing of the first base rate cut due to concerns around service inflation, it is looking increasingly likely that it will either arrive in August or September. In the meantime, we expect to see mortgage rates continue to fall back as lenders compete for business.”