Mortgage lenders are ‘actively competing’ for home buyers, Rightmove claims.
The portal’s mortgage expert has predicted that mortgage rates will remain flat or even drop over the Easter period.
The analysis from Rightmove, using data from mortgage technology provider Podium Solutions, showed 95% loan-to-value (LTV) mortgages have dropped by the most over the past week, down 0.13% for a five-year fix at 5.07%.
That is still higher than the 3.35% a buyer could have got a year ago.
The lowest average rate on the market, according to the research, is now 4.18% for a five-year fix at 60% LTV.
This compares to 2.27% a year ago.
Rightmove mortgage expert Matt Smith, said: “The number of lenders reducing their rates this week has gathered pace, with average rates reducing by up to 0.13%, and more lenders offering sub-4% five-year fixed rates.
“This reflects lenders' increasing confidence in the future direction of rates following the Bank of England Base Rate announcement.
“Perhaps of equal importance, it's a sign that lenders are actively competing for business from prospective home-buyers.
“As we go into the Easter break, we can expect that rates will remain flat or even creep down a little in the coming week. In part due to the bank holidays, but also as lenders take stock of the impact of recent repricing activity.”
|
LTV (loan to value) |
Term |
Average rate 28th March 2023 |
Average rate 4th April 2023 |
Weekly Change |
Average rate a year ago |
|
85% |
2 year fixed |
4.99% |
4.91% |
-0.08% |
2.46% |
|
85% |
5 year fixed |
4.62% |
4.53% |
-0.09% |
2.60% |
|
75% |
2 year fixed |
4.71% |
4.65% |
-0.06% |
2.26% |
|
75% |
5 year fixed |
4.35% |
4.32% |
-0.03% |
2.37% |
|
60% |
2 year fixed |
4.65% |
4.52% |
-0.13% |
2.15% |
|
60% |
5 year fixed |
4.28% |
4.18% |
-0.10% |
2.27% |