Average mortgage rates fall as lenders focus on low LTVs – Rightmove
Average mortgage rates have continued to fall since last week, with larger cuts being made across lower loan-to-value (LTV) bands, data from a property listing firm showed.
The Rightmove weekly mortgage tracker revealed the average two-year fixed mortgage rate was 5.12%, while the average five-year fixed rate came to 4.76% as of 22 August. This was down from averages of 5.18% and 4.8% and last week.
This time last year, the average two-year fixed rate was 6.31%, while the average five-year fixed pricing was 5.69%.
As of today, the lowest available rates averaged at 4.15% for a two-year fix and 3.83% for a five-year fix.
Mortgage rate changes across LTV bands
The Rightmove data showed larger rate movements occurred at lower-LTV bands and mostly for two-year fixes.
The average two-year fixed rate at 60% LTV fell from 4.44% last week to 4.38% this week, while the typical five-year fixed rate at the same tier moved from 4.05% to 4.03%.
A year ago, these rates sat at 6% and 5.31% respectively.
At 75% LTV, the average two-year fixed rate came to 4.88%, down from 4.96% last week, which is a 0.08% fall. Meanwhile, the average five-year fixed rate dropped by six basis points to an average of 4.55%.
The average rates at this tier came to 6.19% for a two-year fix and 5.55% for a five-year fix in 2023.
The average two-year fixed rate at 85% LTV came to 5.17% as of today, and the average five-year fixed rate was 4.82%. Last week, the averages were higher at 5.23% and 4.86% respectively, while they were 6.36% and 5.71% a year ago.
At 90% LTV, the average two-year fixed rate came to 5.53% this week, down from 5.55% last week. The average five-year fixed rate fell from 5.09% to 5.05%.
Last year, these rates were 6.47% and 5.86% respectively.
The typical rate for a two-year fixed deal at 95% LTV was 5.85%, compared to 5.9% last week. Last year, the average pricing was 6.62%.
The average five-year fixed rate at this band fell from 5.47% to 5.43% week-on-week and was down from 6.04% a year ago.
Rightmove calculated that the average monthly mortgage payment for a typical first-time buyer home worth £227,191, on a five-year fix at 85% LTV, was now £1,109 over a 25-year term. This was down from an average monthly payment of £1,191 a year ago, when the typical asking price was lower, at £223,614.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
