The lowest available mortgage rate for a 2-year fixed deal stood at 3.86% this week, reflecting a weekly drop of 0.09% and a yearly decrease of 0.60%, data from Rightmove’s latest Mortgage Tracker has revealed.
The data also revealed that the lowest 5-year fixed rate stood at 3.96%, increasing slightly by 0.04% over the past week but still 0.17% lower than a year ago.
For buyers with a 5% to 10% deposit, rates have seen small declines.
A 95% loan-to-value (LTV) 2-year fixed mortgage now has an average rate of 5.67%, down 0.03% from last week and 0.24% from last year.
A 5-year fixed mortgage at the same LTV stands at 5.37%, also down 0.03% for the week and 0.11% year-on-year.
Buyers with a 90% LTV mortgage can secure a 2-year fixed rate at 5.19%, down 0.04% weekly and 0.27% annually, while the 5-year option has dropped to 4.91%, decreasing by 0.03% in a week and 0.08% over the year.
For buyers with deposits between 15% to 25%, the average 2-year fixed rate for an 85% LTV mortgage has dropped slightly to 4.87%, down 0.02% weekly and 0.35% yearly.
The 5-year fixed rate remain3e unchanged at 4.72%, though it has fallen by 0.07% over the past year.
A 75% LTV two-year fixed mortgage has dipped to 4.62%, reflecting a 0.02% weekly decline and a 0.44% annual drop.
Meanwhile, the 5-year fixed rate in this category has risen slightly by 0.01% to 4.53%, though it is still 0.20% lower than last year.
Buyers with a 40% deposit continue to see the most competitive rates. A 60% LTV 2-year fixed mortgage now averages 4.24%, down 0.01% weekly and 0.45% over the past year.
The 5-year fixed rate in this bracket has increased slightly to 4.20%, up 0.02% for the week but still 0.16% lower than last year.
These figures, provided by Podium, represent averages from 95% of the mortgage market and are based on products with an approximate £999 fee.
Matt Smith, Rightmove’s mortgage expert, said: “Average mortgage rates at the top-end of the market have fallen more quickly than for those with the smallest deposits over the past year.
“Someone with a 10% deposit is still looking at an average 5-year mortgage rate of 4.91%, only slightly down from 4.99% at this time last year.
“By contrast, today someone with a 40% deposit is now looking at an average 5-year mortgage rate of 4.20%, down from 4.36% – and we are still seeing some products below the 4% mark in this bracket.”
He added: “So while borrowing power has improved for first-time buyers, higher, and slower falling, mortgage rates for those with smaller deposits is still stretching affordability.”
