The average five-year fixed mortgage rate has fallen from 6.11 per cent at its peak to 5.07 per cent.
That’s according to Rightmove, which tracks average mortgage rates across the board on a weekly basis.
The property portal said that the average two-year fix is also down since July this year, from 6.61 per cent to 5.48 per cent today.
Further falls
For borrowers with a modest 15 per cent deposit, average fixed mortgage rates are down by a whole percentage point since the summer.
The average five-year fixed, 85 per cent loan-to-value mortgage has reduced from 6.16 per cent at the peak in July to 5.16 per cent now. For someone taking out this type of mortgage, the monthly repayment on an average home has reduced from £2,068 in July, to £1,793 now.
Rightmove added that, for first-time buyers taking out this type of mortgage, the monthly mortgage payment on a typical first-time buyer home has reduced from £1,254 in July, to £1,111 now.
And borrowers with a large deposit of over 40 per cent of the property’s value have seen average rates dip under 4.5 per cent. The average 60 per cent loan-to-value five-year fixed mortgage rate is now 4.46, per cent down from 4.98 per cent a year ago.
Matt Smith, Rightmove’s mortgage expert said: “No news is often good news when it comes to the mortgage market, and yet another week – the 20th in a row – of marginal percentage point drops is positive news for home-movers.
“Swap rates have also remained steady this week, but fell further on the back of the UK GDP data.”
