According to Rightmove, price reductions are being seen at all LTV tiers, with two-year fixed rate starting at 4.5 percent at 60 per cent LTV and the five-year fixed rate at the same tier coming to 4.17 percent.
All the cited average mortgage rates presuppose a product fee of £999. This means that there is a fall of 0.04 percent respectively compared to the previous week.
However, despite these reductions, compared to last year rates are still up from 2.28 percent for a two-year fixed rate at 60 percent LTV and 2.34 percent for its five-year fixed rate equivalent.
Higher LTV ratios are seeing larger drops
At higher LTV ratios, there have been reductions of up to 0.06 percent on average, with the two-year fixed rate at 85 percent LTV falling 0.06 per cent to 4.89 per cent compared to the previous week.
At 90 percent LTV, the two-year fixed rate has also been dropped by 0.06 per cent to 5.14 percent while its five-year fixed rate equivalent has decreased by the same amount to 4.75 percent.
Rightmove’s mortgage expert Matt Smith says: “Average mortgage rates have continued to fall across all loan-to-value ranges for the fifth consecutive week. Due to this sustained period of rate falls, it’s now clear that this is no longer simply due to the March base rate decision, and that lenders are actively competing for business.
“Competition is strongest in the traditional first-time buyer LTV ranges. Average rates have fallen by 0.06 per cent week-on-week for both two and five-year fixed rates at 90 per cent LTV, and two-year fixed rates at 85 per cent LTV have also fallen by 0.06 per cent. Meanwhile, five-year fixed rates at 85 per cent LTV reduced by 0.04 per cent this week.
“It is likely that we’ll see a continuation of the current trend of reducing rates in the immediate term, as lenders vie for business in the Spring buying season.”
Peter Austin
Peter is a writer and photographer with a great interest in property, design, and the economy.
