Average two and five-year fixed rates are now almost 1% lower than in July 2023, the latest Rightmove figures show.
The average five-year fixed mortgage rate is now 4.97%, down from 5.91% a year ago, while the average two-year fix has reduced from 6.42% to 5.35%.
The reductions are the largest at lower LTVs, with two-year fixed rates at 60% LTV now 1.46% lower than this time last year, at 4.78%. The average five-year fix at 60% LTV is 1.43% lower, falling from 5.78% to 4.35%.
Average rates at 75% LTV are also more than 1% lower than in July 2023.
At 85% LTV, two-year fixed rates are down from 6.40% last year to an average of 5.36%, while the average five-year fix is now 4.97%, down from 5.90% a year ago
As a result, the average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed 85% LTV mortgage, is now £1,128 per month, down from £1,228 per month a year ago.
At 90% LTV, two-year fixes are down from 6.51% to 5.63%, while five-year fixes have reduced from 5.99% to 5.14%.
Average 95% LTV two-year fixes are down by 81bps to 6.12%, while five-year fixed rates are down by 56bps to 5.67%.
