Rightmove figures show that the average two-year fixed rate is 4.81% and the average five-year fixed rate is 4.7%, which are drops of 0.04% and 0.03% week-on-week and 0.42% and 0.13% year-on-year.
The cheapest two- and five-year fixed rates currently stand at 3.86% and 3.89%, which are drops of 0.6% and 0.24% annually.
Looking at the 60% loan-to-value (LTV) tier, the average two-year fixed rate is 4.25%, while the average five-year fixed rate is 4.22%. These are drops of 0.46% and 0.1% year-on-year.
Going up to 75% LTV, the average two-year fixed rate is 4.64% and the average five-year fixed rate is 4.56%. These are falls of 0.43% and 0.15% annually.
At 85% LTV, the average two-year fixed rate is priced at 4.8% and the average five-year fixed rate stands at 4.7%, yearly drops of 0.44% and 0.11%.
How life insurance can benefit your health and wellbeing over the decades
Sponsored by Post Office
Within the 90% LTV tier, the average two-year fixed rate comes to 5.15% and the average five-year fixed rate is 4.91%, representing annual decreases of 0.4% and 0.16% respectively.
At 95% LTV, the average two-year fixed rate is 5.59% and the average five-year fixed rate is 5.36%. These are yearly drops of 0.44% and 0.18% respectively.
Matt Smith, Rightmove’s mortgage expert, said: “A lower-than-expected inflation figure today is good news for the wider economy, and it will keep the Bank of England’s plans to cut the bank rate in May on track.
“After another tumultuous week for the global economy, this week has been a little more steady so far. We’ve seen more major lenders announce lowest or ‘best buy’ rates, with some eye-catching sub-4% rates for those with the largest deposits. However, average rates for the mass-market of homemovers have stayed relatively flat.
“Pricing changes can be painful for lenders, as they can quickly erode their margins, so they are looking at other ways to compete. We have seen a range of changes to criteria to help homemovers over the last few weeks, including increasing maximum loan-to-income levels and reducing stress testing. This raft of activity comes on the back of the FCA – the financial services watchdog – encouraging lenders to look at ways to help consumers within the current regulation before a more comprehensive review kicks off in the summer.
“The narrative around tariffs continues to shift almost daily, so I’d still expect some caution from lenders. We’re now just over three weeks away from May’s bank rate decision, and as things stand, it’s looking highly likely we’ll see a second rate cut of 2025.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Select sub-4% deals returning but overall average mortgage rates stable – Rightmove
