Average mortgage two and five-year rates fell for the first time week-on-week since mid-April, the latest data from Rightmove has revealed.

According to the property portal’s weekly mortgage tracker, declines have been recorded at all loan-to-value (LTV) tiers since 25 July.

Latest rates data: 

Despite the week-on-week dip in mortgage borrowing costs, rates have surged over the past 12 months.

Rightmove also calculated: :

+ The average 5-year fixed mortgage rate is now 6.08%, up from 3.69% a year ago

+ The average 2-year fixed mortgage rate is now 6.61%, up from 3.66% a year ago

+ The average 85% LTV 5-year fixed mortgage rate is now 6.15%, up from 3.63% a year ago

+ The average 60% LTV 5-year fixed mortgage rate is now 5.82%, up from 3.44% 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 £1,253 per month

Matt Smith, mortgage expert at Rightmove, said: “Average rates across five-year and two-year fixed products have seen their first weekly drop since mid-April, as the more positive economic news in recent weeks begins to filter through to the mortgage market and lenders tentatively begin to reduce rates.

“As previously seen, lenders are likely to be waiting for this week’s base rate announcement before any further action so they can act with a little more certainty – but without any market surprises, we expect rates to reduce further in the coming weeks and potentially accelerate depending on how positive the signs are.”