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Mortgage pricing has dropped despite last week’s interest rate rise, Rightmove claims.

In a boost for homebuyers, analysis by the portal suggests there have been reductions of up to 0.05% in average rates compared with this time last week.

It comes despite the Bank of England raising the base rate from 4% to 4.25% last Thursday.

The increase may mean higher costs for those on tracker mortgages but lenders seem to be resisting equivalent increases on their fixed rates when it comes to new customers.

Rightmove’s mortgage expert Matt Smith said: “Mortgage lenders had already factored in a Bank rate rise in March. 

“A number of lenders have been quick out of the blocks to change their prices, but with more likely to follow suit in the coming days, we should expect to see further reductions in the coming week.”

LTV (loan to value)

 

Term

Average rate

28th March 2023

Average rate

21st March 2023

Average rate

a year ago

85%

2 year fixed

4.99%

5.03%

2.40%

85%

5 year fixed

4.62%

4.65%

2.54%

75%

2 year fixed

4.71%

4.74%

2.20%

75%

5 year fixed

4.35%

4.38%

2.30%

60%

2 year fixed

4.65%

4.66%

2.09%

60%

5 year fixed

4.28%

4.30%

2.19%