Average 5-year fixed mortgage rate below 5% for first time since June

January 5, 2024
Love or Hate Rightmove

The average 5-year fixed mortgage rate is now 4.96% – the first time it has dipped below 5% since June 2023.

Matt Smith, Rightmove’s mortgage expert said: “Rate cuts are gathering pace, as lenders jostle for position at the start of the year. This can only be good news for those looking to move home and those whose fixed deal comes to an end soon.”

Headlines

 

  • The average 5-year fixed mortgage rate is now 4.96%, down from 5.16% a year ago
  • The average 2-year fixed mortgage rate is now 5.29%, down from 5.42% a year ago
  • The average 85% LTV 5-year fixed mortgage rate is now 5.06%, down from 5.15% a year ago
  • The average 60% LTV 5-year fixed mortgage rate is now 4.36%, down from 4.81% a year ago
  • 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 £1,100 per month, down from £1,118 per month a year ago

 

Latest rates data

 

LTV

(loan to value)

  

Term

 

 Average rate 5th  January 2024 Lowest rate 5th  January 2024 Average rate

a year ago

 

95%

 

 2 year fixed 5.76% 5.40% 6.09%
 

95%

 

 5 year fixed 5.32% 5.10% 5.77%
 

90%

 

 2 year fixed 5.54% 4.99% 5.78%
 

90%

 

 5 year fixed 5.07% 4.54% 5.49%

 

 

 

LTV (loan to value)

  

Term

 Average rate 5th  January 2024 Lowest rate 5th  January 2024 Average rate

a year ago

 

85%

 

 2 year fixed  

5.43%

  

4.84%

 5.43%
 

85%

 

  

5 year fixed

 

  

5.06%

  

4.44%

 5.15%
 

75%

 

  

2 year fixed

  

5.09%

  

4.60%

 5.25%
 

75%

 

  

5 year fixed

 

 4.89% 4.31% 4.91%
 

60%

 

  

2 year fixed

 

 4.61% 4.54% 5.10%
 

60%

 

  

5 year fixed

 4.36% 4.19% 4.81%

 

Rightmove can provide average monthly mortgage payments based on the latest available asking price and mortgage rate data. For example, the average monthly mortgage payment on a first-time buyer type property which is currently £219,984, for someone taking out an average five-year fixed, 85% LTV mortgage, is now £1,100 per month if repaying over 25 years, compared with £1,118 per month a year ago.

Rightmove

UK Property news updates shared directly from Rightmove PLC - the country's leading property portal.

You May Also Enjoy

Home and Living

Expert Review: Pantego Electrical Services – Reliable and Affordable Solutions

When it comes to maintaining safety and comfort in your home or business, high-quality electrical work is crucial. For residents and businesses in Pantego, reliable electrical services are available through licensed professionals who prioritize customer satisfaction. In this review, we explore Pantego Electrical Services and highlight why Darby Electric Service is a trusted choice for the community.…
Read More →
Estate Agent Talk

Storytelling for Homeowners: Producing Content That Connects Emotionally

In the quick-paced global of online facts, information by myself is rarely sufficient to encourage or have an effect on. Whether you’re a home owner sharing your protection adventure, a blogger covering indoors traits, or a real estate professional assisting customers discover their dream homes, storytelling is the important thing to building belief and emotional…
Read More →
Estate Agent Talk

This Summer’s Extreme Heat: What It Means for UK Gardens

The UK has been enjoying plenty of warm sunshine during the early weeks of the 2025 summer season. In predictions made by the Met Office for the three-month outlook there is plenty more hot weather to come. According to the government agency, the UK’s meteorological summer is twice as likely to be hotter than normal…
Read More →
Breaking News

No-fault evictions by bailiffs up 8%

New figures show that in the 12 months since Labour came into Government, no-fault evictions by bailiffs in England have risen by 8%. Labour has pledged to end no-fault evictions under its Renters’ Rights Bill, which is going through Parliament. According to the latest figures from the Ministry of Justice there were 11,402 repossessions by…
Read More →
Breaking News

Leasehold Lettings Under Pressure: Landlords Blocked from Improving Flats

New research from LRG (Leaders Romans Group) reveals that leasehold structures are creating a growing barrier to progress in the rental sector, limiting upgrades, pushing landlords away from flats, and lowering tenant confidence in how buildings are managed. According to LRG’s most recent Lettings Report, 58% of flats let by landlords are leasehold. Among these,…
Read More →
Breaking News

234% surge in demand for air-conditioned homes as UK buyers brace for hotter summers

Following the many heatwaves the UK has experienced this summer, searches for homes that are for sale with air conditioning have more than tripled in a year (+234%).1 According to recent research, just 1.2% of homes for sale in England feature air conditioning, which adds around 2.5% to a property’s overall value.2 As air conditioning…
Read More →