Data shows downward trend for mortgage rates

November 30, 2023 by Heidi

Mortgage Advisors

The latest figures to be released by Rightmove indicate that both the annual and monthly trends for mortgage rates are in a downwards direction, with further drops being reported.

In its weekly mortgage tracker, the digital property portal shows that there has been a 0.23% annual drop in the two-year fixed rate for mortgages of every loan-to-value (LTV). This leaves rates for these loans on 5.65% right now. When it comes to fixed five-year mortgages, the average rate has fallen by 0.14% in comparison with the same time in 2022. That means it currently stands at 5.21%.

It is not just on an annual basis that the rates are going down either. Average fixed five-year mortgage rates as reported in the previous weekly mortgage tracker stood at 5.3%. Meanwhile for fixed two-year loans, the rate for the week before was 5.74%.

The data that has been issued by Rightmove shows that the trend of mortgage rates moving down is consistent across fixed-rate deals at every available LTV level. For example, fixed two-year mortgages at 95% LTV now come with a rate of 6.03%, whereas before they stood at 6.2%. Meanwhile, fixed five-year loans at the same LTV have fallen from 5.73% to 5.56%.

One of the knock-on effects of mortgage rates coming down across the various LTV levels is that people buying a first home have the chance of reducing the costs.

Mortgage advisors with the CeMAP qualification will be pleased to see this at a time when there are other factors against first-time buyers.