Rates currently continue to move in the right direction for new borrowers, with average five-year rates dipping below 6% for the first time in a month.

This is according to the latest weekly mortgage tracker from Rightmove which reveals that five-year products have reduced by an average of 0.2% and two-year products have dropped by an average of 0.1% over the past week, as the full effect of recent lender rate cuts starts to hit the market.

As Rightmove mortgage expert Matt Smith explains: “This week’s inflation data will be key in determining if the current trend continues or is brought to somewhat of a halt”.

He adds: ”The market remains volatile, and things can quickly change if presented with any surprising data. However right now, the downward trend highlights the desire from lenders to become more competitive and attract one of the many motivated buyers we can see are still active in the property market.”

The latest data ahows that the average five-year fixed mortgage rate is now 5.86%, up from 3.85% a year ago. The average two-year fixed mortgage rate is now 6.46%, up from 3.74% a year ago.

The average 85% LTV five-year fixed mortgage rate is now 5.92%, up from 3.83% a year ago

The average 60% LTV five-year fixed mortgage rate is now 5.53%, up from 3.56% 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 £1,226 per month, up from £991 per month a year ago but down from £1,252 last week.