The Rightmove weekly mortgage tracker showed that the average two-year fixed rate is currently 4.71%, 0.05% less than last week, while the average five-year fixed rate fell by 0.03% to 4.66%.
Compared to last year, these were reductions of 0.67% and 0.31% respectively.
The lowest available rates were also cheaper as the sub-4% reductions continued. Just this week, Barclays, HSBC and Nationwide have been among those reducing rates further below 4%.
As of 29 April, Rightmove found that the lowest available two-year fixed rate was 3.79%, a 0.07% fall on 22 April, while the cheapest five-year fixed rate was 0.01% lower than a week earlier, at 3.88%.
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Bigger changes for borrowers with larger deposits
The most significant rate changes were made across deals at lower-loan-to-value (LTV) bands, with cuts of up to 0.08% over the week.
At 60% LTV, the average two-year fixed rate declined by 0.08% and the average five-year fixed rate fell by 0.05%, coming to 4.07% and 4.12% respectively.
Separately, these represented cuts of 0.81% and 0.38% when compared to a year ago.
The average two-year fixed mortgage rate at 75% LTV was 4.49% this week, 0.06% less than last week and 0.73% lower than a year ago. The average five-year fixed rate at the same tier was also 4.49% this week, 0.02% down on the week before and 0.35% cheaper than last year.
At 85% LTV, the average two-year fixed rate came to 4.68%, down by 0.05% on last week and 0.69% on the same time in 2024. Meanwhile, the average five-year fixed rate was 4.61% this week, 0.02% lower than a week earlier and 0.29% down on last year.
Slightly smaller rate changes were made at the upper LTV bands, with the average two-year fixed rate at 90% LTV at 5.02% this week and the average five-year fixed rate at 4.83%. These represented respective reductions of 0.05% and 0.04%. Compared to last year, the average two-year fixed rate at 90% LTV was 0.6% less, and the average five-year fixed rate was 0.31% lower.
At 95% LTV, the average two-year fixed rate declined 0.04% week-on-week to 5.49%, while the average five-year fixed rate was 0.01% lower at 5.33%.
These were annual reductions of 0.56% and 0.26% respectively.
Lenders holding out for the base rate decision
Matt Smith, mortgage expert at Rightmove, said: “Average rates have continued to slowly come down over the last week, while the cheapest available fixed mortgage rate is a two-year fixed rate at 3.79% for those with the largest deposits.
“I think lenders are now biding their time until the 8 May base rate decision, and will likely use what will hopefully be a second cut of the year as an opportunity for further reductions. That also leaves some room for lenders to handle anything unexpected over the next week or so.”
Smith added: “With lenders only having room to cut rates so far, I’d also expect them to continue to fine-tune their affordability criteria to help people to borrow more where possible, which we’ve been seeing more of in recent weeks.”
