That’s according to Rightmove, which said that average rates for both two-year and five-year fixed-rate deals have edged lower, with some of the most competitive options now dipping below 4%.
The overall average rate for a two-year fixed mortgage is now 4.84%, down 0.03 percentage points from last week and 0.36 percentage points lower than this time last year.
Five-year fixed rates also saw a marginal decrease, now averaging 4.68%, down 0.01 percentage points in the past week and 0.15 percentage points year-on-year.
For those looking for the best deals, the lowest available two-year fixed rate is 3.95%, down 0.09 percentage points this week, while the most competitive five-year fixed rate is 3.92%, dropping by 0.05 percentage points.
High loan-to-value mortgages
Borrowers with smaller deposits are also benefitting from lower rates.
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For homebuyers with a 95% loan-to-value (LTV), the average two-year fixed rate fell to 5.52%, while the five-year fixed rate is now 5.27% . Those with larger deposits are seeing even better deals. At 60% LTV, the average two-year fixed rate remains stable at 4.26%, and the five-year fixed rate has ticked up slightly to 4.18%.
Rightmove’s mortgage expert Matt Smith says: “The mortgage market is still quite sensitive to outside noise, and despite the volume turning up recently from across the Atlantic, we’re seeing lenders continue to be as competitive as they can be as the Spring market begins.
“As the stamp duty deadline edges nearer, we expect a rush to complete from those in the process of buying a home, particularly from affordability stretched first-time buyers eager to avoid unnecessarily parting with thousands of extra pounds.”
