Good news for buyers and sellers – mortgage rates have plummeted, with some of the fastest drops in recent memory!
Rightmove’s latest figures reveal some big wins for anyone looking to buy a home or remortgage, with experts predicting even further drops in the near future.
What’s Happening to Mortgage Rates?
- Five-year fixed-rate mortgages are now averaging 4.88%, a dramatic drop from 6.08% just a year ago.
- Two-year fixed-rate mortgages have also fallen significantly, now sitting at an average of 5.27%, down from 6.60% last year.
This means potential savings of hundreds of pounds each month for many borrowers!
First-Time Buyers Feel the Benefit
The average first-time buyer purchasing a typical property could now be paying £1,124 per month on their mortgage. This is a significant decrease of £125 per month compared to the same time last year.
Matt Smith, a mortgage expert at Rightmove, explains: “We’ve seen average mortgage rates drop at a pace not seen for a while this week, faster than many expected as lender competition hots up. It’s interesting to see this competition for business increase even before the Base Rate decision, and though there’s still only around a 50% chance the Base Rate will be cut next week, if the current positive market sentiment continues we could see further mortgage rate cuts.”
What do the latest rates look like?
Here’s a breakdown of the average mortgage rates available right now:
Five-Year Fixed-Rate Mortgages
| Loan-to-Value (LTV) | Average Rate | Lowest Rate | Average Rate a Year Ago |
| 95% | 5.48% | 5.23% | 6.29% |
| 90% | 5.13% | 4.75% | 6.21% |
| 85% | 4.92% | 4.49% | 6.12% |
| 75% | 4.76% | 4.14% | 5.94% |
| 60% | 4.21% | 4.04% | 5.83% |
Two-Year Fixed-Rate Mortgages
| Loan-to-Value (LTV) | Average Rate | Lowest Rate | Average Rate a Year Ago |
| 95% | 5.96% | 5.54% | 6.94% |
| 90% | 5.59% | 5.18% | 6.76% |
| 85% | 5.28% | 4.87% | 6.64% |
| 75% | 5.11% | 4.69% | 6.42% |
| 60% | 4.62% | 4.46% | 6.34% |
This is excellent news for anyone looking to get on the property ladder or secure a better deal on their current mortgage. With rates looking likely to fall further, it could be a great time to explore your options!