Rate cuts have been announced by Coventry Building Society, Barclays, Virgin Money, Pepper Money, Perenna and Accord Mortgages among others.
According to Rightmove, the average five-year fixed mortgage rate is now 4.97%, down from 5.91% a year ago.
The average two-year fixed mortgage rate has fallen to 5.35%, down from 6.42% a year ago, said the property portal.
Borrowers with a modest 15% deposit will find that the average 85% loan-to-value (LTV) five-year fixed mortgage rate is now 4.97%, down from 5.90% a year ago.
Even those with the smallest 5% deposit can access 95% mortgages at an average of 5.67%, down from 6.23% a year ago.
Borrowers with a large deposit of 40% of the property’s value or higher will find that rates are also significantly lower. The average 60% LTV five-year fixed mortgage rate is now 4.35%, down from 5.78% a year ago.
First-time buyers costs down
According to Rightmove, the average mortgage cost for first-time buyers has fallen by £100 per month.
It said that monthly mortgage payments on a typical first-time buyer-type property when taking out an average five-year fixed 85% LTV mortgage is now £1,128 per month, down from £1,228 per month a year ago.
