Average mortgage rates flat week-on-week – Rightmove

The rates for mortgages have slightly gone up by 0.1 per cent from the previous week, but a company that lists properties suggested that the lowering of inflation may result in a decrease in the base rate, which may result in lower prices.

According to the latest data from Rightmove's weekly mortgage tracker, the average interest rate for a two-year fixed mortgage increased slightly from 5.22 per cent to 5.23 per cent as of 20 March. Additionally, there was a marginal increase in the average interest rate for a five-year fixed mortgage from 4.84 per cent to 4.85 per cent over the same week.

When the loan to value (LTV) ratio is at 60 percent, the typical interest rate for a two-year fixed term mortgage has increased slightly from 4.68 percent to 4.69 percent. Meanwhile, the average interest rate for a five-year fixed term mortgage has remained steady at 4.37 percent.

The usual interest rate for a two-year fixed mortgage remained stable at 5.06 percent for a loan-to-value ratio (LTV) of 75 percent. This is the same rate as last week. In contrast, the average interest rate for a five-year fixed mortgage slightly increased from 4.73 percent to 4.74 percent.

The cost of a deal with 85% loan-to-value (LTV) went up slightly. The mean interest rate for a two-year fixed deal increased from 5.21% to 5.22%. Likewise, there was a hike in the typical interest rate for a five-year fixed reservation by 0.1% to 5.22%.

In the same vein, slight increases were documented in the higher loan-to-value categories as well.

If you want to lock in a mortgage rate of 90% loan-to-value for two years, you'll be looking at an average rate of 5.46% according to Rightmove's latest figures. This is a tiny increase from last week's average of 5.44%. Meanwhile, those who opt for a five-year fixed rate mortgage will be looking at an average rate of 4.99%, up slightly from last week's average of 4.98%.

The typical two-year fixed rate climbed to 5.91 per cent at a 95 per cent LTV, which was an increase from 5.9 per cent in the previous week. In addition, the average five-year fixed rate also rose from 5.47 per cent to 5.48 per cent.

Inflation Leads To Lower Base Rates

According to Matt Smith, a mortgage specialist at Rightmove, the latest inflation report is encouraging news. With each passing day, we move closer to a possible reduction in the base interest rate, which could be followed by lower mortgage rates.

I reckon that tomorrow's decision on the base rate by the Bank of England won't be affected by this, but I anticipate that both homemovers and the bank will feel more positive about the economy and mortgage rates moving forward based on what happened today.

According to a recent report by Rightmove, the average monthly payment for a first-time buyer purchasing a property with a 85% loan-to-value ratio on a five-year fixed mortgage has increased from £1,076 in the previous year to £1,101. This means that new homeowners will have to pay more on a monthly basis to own their own home.

Shekina works as the commercial editor at Mortgage Solutions, a publication related to YourMoney.com in the B2B field. She has been working in the B2B publishing industry for over four years and has covered areas such as accounting, pet, funeral, hospitality, retail, and jewellery. Her current focus is on covering recent developments in the mortgage market and collaborating with financial clients to generate sponsored content. You can keep up with her on Twitter by following @ShekinaMS.