Typical mortgage rates dropped this week after it emerged that the inflation rate fell to 2.5% in December, down from 2.6% the month before.
Correspondingly average 2-year fixed rates fell by 0.05% to 4.97%, while 5-year fixed rates fell by 0.04% to 4.75%, Rightmove analysis shows.
It’s thought that there’s more of a prospect the Bank of England could cut interest rates next month due to the fresh inflation data.
Matt Smith Rightmove’s mortgage expert, said: “Despite all of the economic news we’ve had this week, average rates have fallen.
“It shows that despite the challenges affecting the mortgage market at the moment, lenders are keen to maximise the busy buying period and offer as low rates as possible.
“It’s also important to note that the biggest drops we’ve seen are in the mass-market, for those with a smaller deposit of around 10-15%.
“Things are moving quite quickly day to day at the moment, but the anticipated rate cut in early February will be an important milestone to get to this year.”
This week there were particularly big cuts on 85% LTV mortgages, where rates fell by 0.17% for 2-year fixes to 4.91%, and by 0.14% for 5-year fixes to 4.69%.
