Boost for mortgage borrowers as average two-year fix drops below 6%

Rightmove is hopeful that mortgage rates will continue to drop.

It comes as its latest data shows average two-year fixed rate mortgage pricing has fallen below 6% for the first time since June.

The average two-year fixed mortgage rate is now 5.92%, down from 6.09% a year ago, according to research by the portal.

Typical five-year deals have also fallen from 5.75% to 5.43%.

The average 85% loan-to-value (LTV) five-year fixed mortgage rate is now 5.51%, down from 5.69% a year ago, while the average 60% LTV five-year fix is now 5.01%, down from 5.42% a year ago, according to Rightmove

This is potentially positive news for buyers waiting for mortgages to drop before making an offer on a property.

Rightmove’s mortgage expert Matt Smith acknowledges that these rates are still high compared with the ultra-low pricing of recent years.

He said: “It is further evidence of the positive downward trend of fixed rates. 

“Average rates continue to fall across all LTV brackets this week, with all rates now lower than this time last year, though this does compare to the post mini-Budget period.

“While the market remains stable, eyes may soon look to the next sets of economic data, including the upcoming Autumn statement, and how swap rates respond to this news. 

“Nevertheless, we expect the trend of steady rate drops to continue for now, and the next key highlight to look out for will hopefully be a sub-5% rate on offer in the important, mass-market 85% LTV bracket.”