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Average five-year fixed rates fall under 5%

Average five-year fixed rates fall under 5%
Christina Hoghton
Written By:
Christina Hoghton
Posted:
05/07/2024
Updated:
05/07/2024

The average five-year fixed mortgage rate has dipped below 5% for the first time since the beginning of May.

That’s according to Rightmove, which tracks mortgage rates on a weekly basis.

The property portal said the average five-year fixed mortgage rate is now 4.99%, down from 5.68% a year ago.

Two-year fixed rates are also down to 5.37% from 6.17% a year ago.

Borrowers with a modest deposit will find that the average 85% loan to value (LTV) five-year fixed mortgage rate is now 4.99%, down from 5.68% a year ago.

The average monthly mortgage payment on a typical first-time buyer-type property (which is currently £227,757) when taking out an average five-year fixed 85% LTV mortgage, is now £1,131 per month, down from £1,203 per month a year ago.

Larger deposit, lower rate

Those with a large 40% or greater deposit also benefit from lower rates than a year ago.

Rightmove found that the average 60% LTV five-year fixed mortgage rate is now 4.39%, down from 5.42% a year ago.

Related: More than a third of mortgagors still paying sub-3% rates