Average mortgage rates have continued to fall since last week, with larger cuts being made across lower loan-to-value (LTV) bands (for borrowers with a larger deposit), data from a property listing firm showed.
The Rightmove weekly mortgage tracker revealed the average two-year fixed mortgage rate was 5.12%, while the average five-year fixed rate came to 4.76% as of 22 August. This was down from averages of 5.18% and 4.8% last week.
This time last year, the average two-year fixed rate was 6.31%, while the average five-year fixed pricing was 5.69%.
As of today, the lowest available rates averaged at 4.15% for a two-year fix and 3.83% for a five-year fix.
Mortgage rate changes based on deposit size
The Rightmove data showed larger rate movements occurred at lower LTV bands and mostly for two-year fixes.
The average two-year fixed rate at 60% LTV fell from 4.44% last week to 4.38% this week, while the typical five-year fixed rate at the same tier moved from 4.05% to 4.03%.
A year ago, these rates sat at 6% and 5.31% respectively.
At 75% LTV, the average two-year fixed rate came to 4.88%, down from 4.96% last week, which is a 0.08% fall. Meanwhile, the average five-year fixed rate dropped by six basis points to an average of 4.55%.
The average rates at this tier came to 6.19% for a two-year fix and 5.55% for a five-year fix in 2023.
The average two-year fixed rate at 85% LTV came to 5.17% as of today, and the average five-year fixed rate was 4.82%. Last week, the averages were higher at 5.23% and 4.86% respectively, while they were 6.36% and 5.71% a year ago.
At 90% LTV, the average two-year fixed rate came to 5.53% this week, down from 5.55% last week. The average five-year fixed rate fell from 5.09% to 5.05%.
Last year, these rates were 6.47% and 5.86% respectively.
The typical rate for a two-year fixed deal at 95% LTV was 5.85%, compared to 5.9% last week. Last year, the average pricing was 6.62%.
The average five-year fixed rate at this band fell from 5.47% to 5.43% week-on-week and was down from 6.04% a year ago.
Rightmove calculated that the average monthly mortgage payment for a typical first-time buyer home worth £227,191, on a five-year fix at 85% LTV, was now £1,109 over a 25-year term. This was down from an average monthly payment of £1,191 a year ago, when the typical asking price was lower, at £223,614.
This article was first published on YourMoney‘s sister site, Mortgage Solutions. Read: Average mortgage rates fall as lenders focus on low LTVs – Rightmove