Last week’s inflation numbers have not had any material impact on rates, and they continue to slowly creep downwards.
As Rightmove’s mortgage expert Matt Smith goes on to explain: “It could be just a matter of days before we start seeing sub 5% rates in the higher Loan-To-Value (LTV) brackets, which would be a first since June and could help to spark a new wave of home-mover confidence.
“The market is still expecting base rates to be held next week, so we’re likely to see mortgage rates continue to trend downwards in the coming week”.
The latest stats from Rightmove show:
- The average five-year fixed mortgage rate is now 5.38%, down from 6.11% a year ago
- The average two-year fixed mortgage rate is now 5.85%, down from 6.31% a year ago
- The average 85% LTV five-year fixed mortgage rate is 5.47%, down from 6.10% a year ago
- The average 60% LTV 5-year fixed mortgage rate is now 4.95%, down from 5.81% a year ago
The average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed, 85% LTV mortgage, is now £1,167 per month, down from £1,242 per month a year ago.
