Mortgage rates stayed fairly stable on the week before, with little change in the average pricing, data from a property listing firm showed.
The Rightmove weekly mortgage tracker showed the average two-year fixed rate was 5.06% and the average five-year fixed rate was 4.81%. Compared to last week, this was no change to the average five-year fixed rate and a nominal 0.01% fall in two-year fixed pricing.
There was a larger difference between where rates sat this week and this time last year, as the average two-year fix was 0.38% lower than last year’s average and the typical five-year fix was 0.22% cheaper.
The lowest available two-year fixed mortgage rate was 4.21%, flat on the week before, while the lowest five-year fix was 4.07%, 0.03% less than a week ago.
Across loan-to-value (LTV) tiers, the largest changes were seen at lower levels – albeit modest ones.
At 60% LTV, the average two-year fixed rate fell by 0.03% week-on-week to 4.33%, while the average five-year fixed rate dropped by 0.02% to 4.22%.
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The average two-year fixed rate at 75% LTV was 0.02% down on the week before at 4.83%, but the average five-year fixed rate was flat at 4.69%.
At 85% LTV, the average two-year fixed rate declined by 0.01% to 5.06%, while the average five-year fixed rate was the same as last week at 4.85%.
There was also little pricing change at higher LTVs, as the average two-year fixed rate at 90% LTV came to 5.47%, 0.01% lower than the previous week, and the average five-year fixed rate was unchanged at 5.05%.
At 95% LTV, there was no change in the average mortgage rates, with a two-year fix at 5.72% and a five-year fix at 5.31%.
Reacting to this week’s decision to hold the base rate at 4.75%, Matt Smith, mortgage expert at Rightmove, said: “While not the early Christmas present that many would have wanted, it was widely anticipated, and must be considered against a backdrop of inflation being at the top end of forecasts, and wages have increased at a higher rate than expected.
“We don’t expect any reductions in mortgage rates over the next few weeks, but as we progress into 2025, lenders are likely to look at ways to take advantage of increased demand as the busier home buying season starts. As we move towards the end of the stamp duty reduction, lenders are also likely to look at reducing rates wherever possible.”
He added: “Next year, three bank rate cuts are currently planned rather than the four anticipated just a few weeks ago, highlighting how quickly things can change in the market.
“We predict average mortgage rates could trickle slowly down towards around 4% next year, though this is dependent on the impact of a wide variety of unpredictable factors, including geopolitical tensions and inflation.”
