Fixed mortgage rates are falling, according to the latest data from Rightmove.

The property portal found slight rate reductions across all loan-to-value tiers, for borrowers with a small deposit to those with a significant sum to put down upfront.

The cheapest deals are on offer to those with at least 40% upfront, who need to borrow up to 60% of the property’s value (called the loan-to-value – LTV – ratio).

The average two-year fixed rate up to 60% LTV is now 4.52%, down from 4.65% last week. The average five-year fixed rate is now 4.18%, down from 4.28%.

Despite the drop, both of these rates are still significantly higher than a year ago when they were 2.15% and 2.27% respectively.

Low deposit mortgages

Mortgages for borrowers with smaller deposits have also reduced, said Rightmove.

Two-year fixed mortgages for those with at least 10% upfront, who need to borrow up to 90% of the property’s value, are now an average 5.18%, compared to 5.22% a week ago. Five-year fixed rates are now an average 4.78% compared to 4.84% a week ago.

Both are still much higher than a year ago when they were 2.55% and 2.81% respectively.

Rightmove’s mortgage expert, Matt Smith, said: “The number of lenders reducing their rates this week has gathered pace, with average rates reducing by up to 0.13%, and more lenders offering sub-4% five-year fixed rates.

“This reflects lenders’ increasing confidence in the future direction of rates following the Bank of England Base Rate announcement. And, perhaps of equal importance, it’s a sign that lenders are actively competing for business from prospective home-buyers.

“As we go into the Easter break, we can expect that rates will remain flat or even creep down a little in the coming week. In part due to the bank holidays, but also as lenders take stock of the impact of recent repricing activity.”