Two- and five-year interest rates have fallen by as much as 146 basis points compared to a year ago, Rightmove’s latest mortgage rate tracker shows.
The average two-year fix for all LTV levels is now 5.35%, down 107 basis points from 6.42% a year ago.
The average five-year fix for all LTVs is now 4.97%, down 94 basis points from 5.91% a year ago.
Products in the 60% LTV segment saw the steepest decline, with the average two-year fix falling 146 basis points from 6.24% to 4.78%.
The average five-year interest rate at the same level fell by 143 basis points from 5.78% to 4.35%.
The average 85% LTV fixed rate over five years is now 4.97%, down 93 basis points from 5.9% a year ago
This means the average monthly mortgage payment for a typical starter home with a five-year fixed mortgage with an 85% LTV is now £1,128 per month, compared to £1,228 per month a year ago.