Average two-year fix drops below 6% for first time since June: Rightmove

The average two-year fixed mortgage rate is now 5.92%, down from 6.09% a year ago – the first time since June the average two-year fix is below 6%, according to Rightmove's latest figures.

The average five-year fixed mortgage rate is now 5.43%, down from 5.75% a year ago.

Within the five-year fixed rate bracket, the average 60% LTV is now 5.01%, down from 5.42% a year ago, while the average 85% LTV is down from 5.69% to 5.51%.

As a result, the average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed 85% LTV mortgage is now £1,177 per month, down from £1,193 per month a year ago.

Rightmove’s mortgage expert, Matt Smith, said: “The average two-year fixed mortgage rate is now below 6% for the first time since June, which while still very high compared to the ultra-low levels of recent years, 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.”