Mortgages
Mortgage rates continue to creep down
Mortgage rates have continued to creep down with the biggest weekly reduction applied to home loans where a 5% is required.
A 0.1% rate reduction for 95% loan to value (LTV) two-year fixed deals is the biggest downwards movement in mortgage rates, according to Rightmove’s tracker.
Borrowers with a 5% deposit can now secure an average rate of 5.52% down from 5.62% the week before.
Smaller changes to 90% LTV rates mean that homeowners can access an average two-year deal of 5.14% and a five-year deal at 4.75%.
Rightmove’s mortgage expert Matt Smith said: “Average rates have crept down again this week, but the pace of change has dropped a little. This lull is likely to be a combination of the Easter break limiting activity, and lenders taking stock following a very active period of price cuts across the market.
“We can probably expect a similar pattern in the coming week, although there are increasing signs of competition at lower LTVs.”
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There are now nine lenders offering five-year fixed-rate deals below 4% at 60% LTV, for borrowers with a 40% deposit and two lenders now offering a sub-4% 5-year fixed rate to those with a 25% deposit.
“This is the first time that a high-street lender has offered a 75% LTV rate below the 4% mark since mid-September last year,” added Smith.