Mortgage rates below 5% are now options for borrowers at most loan-to-value (LTV) tiers, data has shown.
The Rightmove weekly mortgage tracker revealed that a rate of less than 5% was available for most deposit sizes, except for borrowers taking a two-year fix at 95% LTV.
The lowest available rate at this tier is 5.22% as of 4 October, while the average is 5.56%.
However, borrowers wanting to fix for five years instead could have the option of a deal with a rate as low as 4.95%, while as of 4 October, the average pricing for a five-year fix at 95% LTV is currently higher at 5.21%.
At 90% LTV, the average price of a two-year fixed mortgage is 5.33%, and the lowest option is 4.85%. For borrowers fixing for five years, the average rate is 4.85% and the cheapest is 4.37%.
Borrowers with larger deposits and more equity can access cheaper mortgage pricing, as the Rightmove data showed the average rate of a two-year fix at 85% LTV is 4.92%, while the lowest available is 4.39%.
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Respectively, the five-year fixed equivalents are 4.59% and 4.09%.
At 75% LTV, the typical two-year fixed rate is 4.66%, while the lowest is 4.04%. The average five-year fixed rate at this level is 4.37%, compared to the cheapest rate of 3.87%.
For a deal at 60% LTV, the average two-year fixed rate is 4.11% and the average five-year fixed rate is 3.89%. Meanwhile, the lowest available options are 3.84% and 3.68% respectively, with Santander bringing the latter to market today.
Overall, the average two-year fixed rate as of 4 October was 4.9%, and the average five-year fix was 4.57%. This compares to respective rates of 5.92% and 5.43% last year.
Rightmove calculated that for a first-time buyer taking a five-year fix at 85% LTV on a 25-year term, the monthly mortgage payment would be £1,085, down from £1,117 a year ago.
This is based on a property valued at £227,570.
