That’s according to Rightmove, which added that the average two-year fixed mortgage rate is now 4.9%, down from 5.92% a year ago.
The average 85% five-year fixed mortgage rate is now 4.59%, down from 5.51% a year ago.
The property portal added that, based on this rate, the average monthly mortgage payment on a first-time buyer type of property (currently £227,570) is now £1,085 per month if repaying over 25 years. This compares with £1,177 per month a year ago (when the average first-time buyer property asking price was £225,244).
Borrowers with a larger deposit or equity level have also seen falling rates. The average 60% loan-to-value (LTV) five-year fixed mortgage rate is now 3.89%, down from 5.01% a year ago.
Month-on-month fall in rates
A second mortgage rate report, from Uswitch, echoed the findings. It found a significant decrease in average mortgage rates over the past month alone, providing relief to homebuyers and remortgagors.
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The average two-year fixed-rate mortgage up to 75% of the property’s value from the big six lenders has decreased to 4.57%, down from 4.68% last month.
The equivalent five-year fixed-rate mortgage has also seen a reduction to 4.09%, down from 4.24%.
When analysing the lowest mortgage rates, the average two-year fixed-rate mortgage for those with a 25% deposit across all lenders fell by 0.26 percentage points to 4.09%.
