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