The Rightmove weekly mortgage tracker found that as of today, a rate of 3.95% was available for a five-year fixed mortgage at 60% loan to value (LTV). This product was launched by HSBC today.

This is set to fall further after Barclays announced a 3.84% purchase product, which will come to market from 8 August. This launch undercut Nationwide’s 3.99% five-year fixed deal, which set off the latest sub-4% trend. 

The lowest available two-year fixed rate at 60% LTV is currently 4.39%.

As of 7 August, the average five-year fixed mortgage rate was 4.86%, while the average two-year fixed rate was 5.24%.

These averages were marginally down on the typical two-year fixed rate of 4.88% and five-year fixed rate of 5.25% of last week. Average rates were also lower than last year’s pricing of 6.49% and 5.99% respectively. 

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Average rates across the LTV tiers 

The average two-year fixed rate for a product at 60% LTV was 4.55% as of 7 August, while the average five-year fix came to 4.14%.

This was compared to last week’s respective rates of 4.59% and 4.19%, as well as the previous year’s 6.21% and 5.67%. 

The lowest available 60% LTV two-year fixed rate was 4.39%. 

At 75% LTV, the average two-year fixed rate fell from 5.08% last week to 5.05% today, while the five-year fixed rate moved from 4.73% to 4.69%. A year ago, these rates would have been 6.29% and 5.85% respectively. 

The cheapest rates available at this tier were 4.63% for a two-year fix and 4.14% for a five-year fix. 

For a two-year fixed rate mortgage at 85% LTV, the average rate fell from 5.27% to 5.24%, while the typical five-year fixed rate decreased from 4.91% to 4.88%. This time in 2023, the average rates were 6.51% and 6.07%. 

The lowest rates at this tier came to 4.84% for a two-year fix and 4.47% for a five-year fix. 

The typical two-year fixed rate at 90% LTV was 5.59% as of today, slightly higher than 5.58% a week earlier. At the same time, the average five-year fixed rate at this level stayed the same at 5.12%. 

Last year, the rates were 6.72% and 6.15% respectively. 

For a borrower with a 10% deposit, the lowest rate at this tier was 5.18% for a two-year fix or 4.75% for a five-year fix. 

At 95% LTV, the average two-year fixed rate declined from 5.96% to 5.94%, while the average five-year fixed rate rose marginally from 5.48% to 5.5%. Compared to last year, this was down from the respective rates of 6.92% and 6.21%. 

The lowest available rates at this bracket came to 5.54% for a two-year fix and 5.23% for a five-year fix. 

Rightmove calculated that the average monthly mortgage payment for a typical first-time buyer home worth £227,924, on a five-year fix at 85% LTV, was now £1,119 over a 25-year term. This was down from an average monthly payment of £1,243 a year ago, when the typical asking price was lower at £225,552.