According to Rightmove, lenders’ confidence in the economy and the trajectory of the Bank of England base rate has meant that they are now offering more sub-4% five-year fixed rate deals.

Matt Smith, mortgage expert at Rightmove, said that the number of lenders cutting rates this week had “gathered pace”, with average rates going down by up to 0.13%.

He said: “This reflects lenders’ increasing confidence in the future direction of rates following the Bank of England base rate announcement. And, perhaps of equal importance, it’s a sign that lenders are actively competing for business from prospective homebuyers.   

Rates fall across all categories

According to Rightmove’s weekly mortgage trends data, the average rate for a two-year fixed rate at 60% loan to value (LTV) with a £999 fee is 4.52%, down from 4.65% as of last week on 28 March. 

The average rate for a five-year fixed rate at the same tier is 4.18%, compared to 4.28% last week. 

These represent rate cuts of 0.13% and 0.1% respectively. 

The average two-year fixed rate at 75% LTV is 4.65%, a decrease from 4.71%, while a five-year fixed rate is 4.32%, a fall from 4.35% previously.

At 85% LTV, two-year fixed rates have reduced by 0.08% on average to reach 4.91%, while five-year fixed rates are now 4.53%, down from 4.62%.  

Smith added that over the Easter break, rates may even fall further.

He said: “As we go into the Easter break, we can expect that rates will remain flat or even creep down a little in the coming week. In part due to the bank holidays, but also as lenders take stock of the impact of recent repricing activity.”