That’s according to Rightmove, which added that the rate has dropped by 0.12 percentage points over the last 12 months.
For those looking for a medium-term fixed rate, it’s a similar trend, with the average rate for five-year fixed rate mortgages falling 0.4 percentage points to 4.73%.
However, unlike the two-year rate, five-year fixes have experienced a slight yearly increase of 0.02 percentage points.
When it comes to the lowest rates available, two-year fixes saw no change this week at 4.15%, although this is down marginally over the year. The lowest five-year fixed rates inched down by one basis point this week to 3.99%, which is actually five basis points higher than a year ago.
Rightmove’s mortgage expert, Matt Smith, said: “It’s another week of average rate drops, and the response from the market since the Bank Rate cut has been positive. We hope to now see a sustained period of mortgage rates trickling downwards to lead us through the Spring selling season.”
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“The first sub 4% rate is a big sentiment boost for the market, after a fairly bumpy start to the year where lots of economic news has been thrown at us. Expect to see other lenders follow suit over the next few weeks to try and capitalise on the busiest period of the year for the home-moving market.
“The big test will be whether this positive momentum continues later in the year, and more mass-market movers are able to access rates closer to 4% – the average is still closer to 5%.”
