Mortgage rates for two- and five-year fixed deals across loan-to-value (LTV) brackets have remained stable on average over the last week, at 5.09% and 4.86% respectively.
While there was a marginal fall of 0.01% on the previous week recorded for both deal terms, average two-year fixes are 0.46% lower than last year, while five-year fixes are 0.27% down.
Rightmove’s weekly mortgage tracker pegged the lowest two-year fixed rate at 4.22%, 0.53% down on the same period last year. The lowest five-year fix at 4.14% is 0.27% down on last year.
According to the portal’s analysis, the current average asking price of a typical first-time buyer property is £225,340.
For someone taking out an average five-year fixed 85% LTV mortgage, the average monthly mortgage repayment on this type of home is now £1,104 per month if repaying over 25 years. This compares with £1,138 per month a year ago, when the average first-time buyer property asking price was £223,426.
Typical first-time buyer deals, for borrowers with a 5% deposit, have also remained stable during the last week, and while the deals are cheaper than this time last year, rates have not fallen as much as the declines recorded in lower-LTV brackets.
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An average two-year fix at 95% LTV costs 5.65%, 0.3% down on last year. Five-year fixes have fallen by 0.17% over the last year to 5.34% on average.
Recent mortgage rate increases by most lenders since the Bank of England cut the base rate from 5% to 4.75% have “created panic and uncertainty for buyers and homemovers”, according to brokers.
In Mortgage Solutions‘ latest Marketwatch, Ken James, director at Contractor Mortgage Services, said stress levels were higher after what had been a calm period leading up to the Budget.
