The latest mortgage tracker from Rightmove has revealed that two-year fixed mortgage rates have reduced by 114 basis points compared to last year.
Where the average two-year ix stood at 6.07% a year ago, it now stands at 4.93%.
The average five-year mortgage rate has fallen 95 basis points from 5.53% last year to 4.58% this year.
The average 85% loan-to-value (LTV) five-year fixed mortgage rate has fallen from 5.60% last year to 4.61% this year.
The average 60% LTV five-year fixed mortgage rate has dropped from 5.15% a year ago to 3.87% this year.
The average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed, 85% LTV mortgage, stood at £1,187 per month a year ago and has since dropped to £1,087 per month this year.
Commenting on the latest figures Propertymark NAEA president Toby Leek says: “It has been an extremely challenging few years for people in terms of approaching the housing market.”
“We have witnessed a very unfavourable mix of high inflation and high interest rates, which truly have affected the ability of people to approach the buying and selling process. However, now that the economy is seeing progression and more overall stability, it’s reassuring to see lenders now starting to overhaul their offerings, which will help bring an enhanced confidence and affordability moving forwards.”