It looks like lenders are likely to give early 2024 movers the belated Christmas present of lower mortgage rates. This is according to Rightmove’s mortgage expert Matt Smith.

“After the reduction in swap rates we saw before the holidays, this is now starting to filter through to mortgage rates now that the festivities are over and the working year has begun”.

Smith adds: “Unless things change, the signs are positive that lenders will reduce rates further over the coming weeks. Combined with the early-year bounce in home-mover activity we’re starting to see, lenders who price more competitively can expect growing interest from those looking to take out a mortgage soon.”

The latest figures from Rightmove show the year-on-year rate changes:

• The average 5-year fixed mortgage rate is now 5.02%, down from 5.23% a year ago
• The average 2-year fixed mortgage rate is now 5.43%, down from 5.46% a year ago
• The average 85% LTV 5-year fixed mortgage rate is now 5.10%, down from 5.25% a year ago
• The average 60% LTV 5-year fixed mortgage rate is now 4.44%, down from 4.92% 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 £1,104 per month, down from £1,129 per month a year ago.