Rightmove’s Weekly Mortgage Tracker shows that for an 85% LTV five-year fix, the average rate at 31 May is 4.5% – down just 0.01% on last week but significantly up on the 3.01% the same time last year.
For a 60% LTV five-year fix, the rate is up 0.10% on last week at 4.38% and this compares to 2.68% a year ago.
For a 95% LTV two-year fix the average rate is also up 0.14% to 5.74% for this week. The same time last year the rate was 3.31%.
For a 90% LTV two-year fix and five year fix the rates are down marginally for the week – now standing at 5.11% and 4.76% respectively – this compares to 2.95% and 3.16% at end of May 2022.
For a 75% LTV two-year fix the average rate this week stands at 4.79%, (up 0,05% on last week) and markedly above the 2.78% last year. Similarly a 75% LTV five -year fix has an average rate of 4.43%(up 0.02% on last week) compared to 2.81% just 12 months ago.
Rightmove’s mortgage expert Matt Smith says: ““In the past week we’ve seen average mortgage rates creep up across the majority of fixed-rate products as we see lenders react to higher-than-anticipated inflation figures.
“There’s also been a withdrawal of some mortgage products from the market, and these two factors may be understandably concerning to those thinking of taking out a mortgage soon.”
“If we dig beneath the headlines, the majority of the products withdrawn so far are from smaller lenders with higher rate products in the 90% and 85% LTV brackets, with not much further movement from bigger lenders yet following the end of last week.
“This is why the average mortgage rate has actually edged downwards in some of the smaller deposit products compared to last week”.
Smith suggests it will likely take some weeks for the full effect of the latest inflation figures to impact the mortgage market, and we will get a better sense of the direction of travel when there is more movement from bigger lenders.
