Mortgage rates have gone up slightly by 0.1% since last week, according to data from Rightmove. However, there’s good news about inflation going down, which could lead to a cut in the base interest rate. This might result in lower mortgage prices, as predicted by a property listing firm.
For example, the average two-year fixed rate for mortgages with a 60% loan-to-value (LTV) ratio is now 4.69%, up a bit from 4.68% last week. The average five-year fixed rate stayed the same at 4.37%.
Matt Smith, a mortgage expert at Rightmove, mentioned that the news about inflation is encouraging. He thinks that while it may not affect the Bank of England’s decision on the base rate tomorrow, it could lead to optimism for both the bank and homebuyers about the economy and mortgage rates in the future.
According to Rightmove’s findings, for a typical first-time buyer purchasing a property with a five-year fixed mortgage at 85% LTV, the average monthly payment is now £1,101, compared to £1,076 last year.
