The average monthly mortgage cost for a first-time buyer has decreased thanks to falling rates, data from a property listing firm found.
The Rightmove weekly mortgage tracker showed that a first-time buyer purchasing a home worth £227,191 with a five-year fixed mortgage at 85% loan to value (LTV) over 25 years would pay £1,095 per month, compared to £1,191 last year when the asking price for a typical first-time buyer home was higher at £223,614.
This was also slightly cheaper than the average of £1,097 reported by Rightmove last week.
Average mortgage rates have stayed fairly stable week-on-week, with the firm saying the typical two-year fixed rate was 5.03% as of 11 September, down from 5.04% last week. It found that the average five-year fixed rate was 4.67%, down from 4.68% a week earlier.
Compared to this time last year, rates were lower than respective averages of 6.22% and 5.64%.
As of 11 September, the lowest available rate for a two-year fix was 4.12%, and it was 3.77% for a five-year fix.
At 60% LTV, the average two-year fixed rate was found to be 4.28%, compared to 5.88% last year, while the average five-year fixed rate was 3.97%, down from 5.27%. The lowest available rates at this tier were 4.12% and 3.77% respectively.
At 75% LTV, the average two-year fixed rate fell from 6.05% to 4.78% annually. The typical five-year fixed rate decreased from 5.47% to 4.44% year-on-year. This week, the lowest available rates were 4.34% for a two-year fix and 3.93% for a five-year fix.
The average two-year fixed rate at 85% LTV declined from 6.27% a year ago to 5.04% this week, and the average five-year fixed rate moved from 5.71% to 4.7%. The cheapest options at this tier were 4.53% for a two-year fix and 4.14% for a five-year fix.
The average rate for a two-year fix at 90% LTV was 5.47%, down from 6.44% in 2023, and the typical five-year fixed rate dropped from 5.83% to 4.97%. The lowest priced deals at this tier were 5.12% for a two-year fix and 4.55% for a five-year fix.
At 95% LTV, the average two-year fixed rate was 5.71% and the average five-year fixed rate was 5.35% this week, down from respective pricing of 6.56% and 5.97% a year ago. At this level, the cheapest rates were 5.35% for a two-year fix and 5.05% for a five-year fix.
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
