Most average mortgage rates declined week-on-week despite the mixed news about the UK economy, a property portal found.
The Rightmove weekly mortgage tracker showed there was a 0.05% fall in the average two-year fixed rate, which came to 4.97% this week, while the average five-year fixed rate has dropped by 0.04% since last week to 4.75%.
Compared to this time last year, average rates were lower by 0.1% and 0.03% respectively.
The lowest available rates were unchanged at 4.2% for a two-year fix and 4.07% for a five-year fix.
At 60% loan to value (LTV), the average two-year fixed rate was 4.36% this week, while the average five-year fixed rate was 4.26%, with both being 0.04% higher than the week before.
Deals at 75% LTV were both 0.02% down week-on-week, with the average two-year fix at 4.75% and the average five-year fix at 4.61%.
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The average two-year fixed rate at 85% LTV was 0.17% lower than last week, coming to 4.91%. Meanwhile, the average five-year fixed rate fell 0.14% to 4.69%.
At 90% LTV, the average two-year fixed rate dropped 0.08% to 5.36% and the average five-year fixed rate declined by 0.05% to 4.97%.
For a two-year fixed rate at 95% LTV, the average rate was 0.05% higher than last week at 5.68%, while the average five-year fixed rate came to 5.36%, a 0.01% rise.
Matt Smith, mortgage expert at Rightmove, said: “Despite all of the economic news we’ve had this week, average rates have fallen. It shows that despite the challenges affecting the mortgage market at the moment, lenders are keen to maximise the busy buying period and offer as low rates as possible. It’s also important to note that the biggest drops we’ve seen are in the mass market, for those with a smaller deposit of around 10-15%.
“Things are moving quite quickly day to day at the moment, but the anticipated rate cut in early February will be an important milestone to get to this year.”
