Average mortgage rates have continued to trickle down week-on-week, with the most significant falls seen on shorter-term deals, industry data showed.
The Rightmove weekly mortgage tracker revealed that as of 1 July, the average two-year fixed rate was 4.57%, a 0.05% fall on last week, while the typical five-year fixed rate was 0.04% lower at 4.55%.
This comes as a number of lenders, such as TSB, Barclays and HSBC, announced mortgage rate cuts that went live today.
Compared to this time last year, the average two-year fixed rate was 0.83% down and the average five-year fixed rate had declined by 0.45%.
There was an even bigger change seen in the lowest available rates, as the cheapest two-year fixed deal had a rate of 3.69%, a 0.13% reduction on the week prior. The lowest rated five-year fixed deal was just 0.01% cheaper than last week at 3.87%.
Annually, this represented declines of 0.98% and 0.36% respectively.
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For borrowers with a 40% deposit, the average two-year fixed rate was 3.91%, down from 3.97% last week, and the average five-year fixed rate moved from 4.02% to 4%.
Again, larger cuts were seen on an annual basis, as the two-year fix was 0.92% cheaper and the five-year fix was 0.41% less.
At 75% loan to value (LTV), the average two-year fixed rate fell from 4.43% to 4.38% week-on-week, representing a 0.05% reduction, while the average five-year fixed rate was 0.04% lower at 4.43%.
Further, these mortgages were 0.87% and 0.44% cheaper than last year respectively.
The average two-year fixed rate at 85% LTV decreased by 0.07% to 4.48%, while there was a 0.06% reduction in the average five-year fixed rate, coming to 4.46%.
Annually, these were respective falls of 0.91% and 0.54%.
At 90% LTV, the average two-year fixed rate was 0.06% lower than last week at 4.81% and the average five-year fixed rate was 4.72%, 0.04% down. Compared to last year, pricing was 0.85% and 0.44% lower respectively.
Mortgages at 95% LTV were the only ones to see bigger weekly reductions for five-year fixed deals. The average two-year fixed rate as of 1 July was 5.26%, a 0.02% drop on last week, while the average five-year fixed rate decreased by 0.04% to 5.24%.
Still, when compared to last year, the difference in the average two-year fixed rate was larger than the average five-year fixed rate, falling by 0.86%, while the pricing for a five-year deal was 0.44% lower.