"Rate cuts are gathering pace, as lenders jostle for position at the start of the year."
- Matt Smith, Rightmove’s mortgage expert
The average five-year fixed rate mortgage is now 4.96% - the first time it has dipped below 5% since June 2023, according to the latest Rightmove data.
The figures show that the average five-year fix at 60% LTV is now 4.36%, down from 4.81% a year ago, with the lowest available rate at 4.19%.
At 85% LTV, the average five-year fix is at 5.06%, down from 5.15% a year ago. This means the average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fix at 85% LTV is now £1,100 per month, down from £1,118 a year ago.
The average two-year fixed mortgage rate is currently at 5.29%, down from 5.42% a year ago, however the lowest two-year fix available on the market is at 4.54%.
Matt Smith, Rightmove’s mortgage expert, said: “Rate cuts are gathering pace, as lenders jostle for position at the start of the year. This can only be good news for those looking to move home and those whose fixed deal comes to an end soon.”
