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FTB mortgage costs fall as rates continue to decline – Rightmove
The average monthly mortgage cost for a first-time buyer has decreased thanks to falling rates, data from a property listing firm found.
The Rightmove weekly mortgage tracker showed that a first-time buyer purchasing a home worth £227,191 with a five-year fixed mortgage at 85% loan to value (LTV) over 25 years would pay £1,095 per month, compared to £1,191 last year when the asking price for a typical first-time buyer home was higher at £223,614.
This was also slightly cheaper than the average of £1,097 reported by Rightmove last week.
Average mortgage rates have stayed fairly stable week-on-week, with the firm saying the typical two-year fixed rate was 5.03% as of 11 September, down from 5.04% last week. It found that the average five-year fixed rate was 4.67%, down from 4.68% a week earlier.
Compared to this time last year, rates were lower than respective averages of 6.22% and 5.64%.
As of 11 September, the lowest available rate for a two-year fix was 4.12%, and it was 3.77% for a five-year fix.
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At 60% LTV, the average two-year fixed rate was found to be 4.28%, compared to 5.88% last year, while the average five-year fixed rate was 3.97%, down from 5.27%. The lowest available rates at this tier were 4.12% and 3.77% respectively.
At 75% LTV, the average two-year fixed rate fell from 6.05% to 4.78% annually. The typical five-year fixed rate decreased from 5.47% to 4.44% year-on-year. This week, the lowest available rates were 4.34% for a two-year fix and 3.93% for a five-year fix.
The average two-year fixed rate at 85% LTV declined from 6.27% a year ago to 5.04% this week, and the average five-year fixed rate moved from 5.71% to 4.7%. The cheapest options at this tier were 4.53% for a two-year fix and 4.14% for a five-year fix.
The average rate for a two-year fix at 90% LTV was 5.47%, down from 6.44% in 2023, and the typical five-year fixed rate dropped from 5.83% to 4.97%. The lowest priced deals at this tier were 5.12% for a two-year fix and 4.55% for a five-year fix.
At 95% LTV, the average two-year fixed rate was 5.71% and the average five-year fixed rate was 5.35% this week, down from respective pricing of 6.56% and 5.97% a year ago. At this level, the cheapest rates were 5.35% for a two-year fix and 5.05% for a five-year fix.