Mortgage rate activity remained subdued this week, with fixed-rate cuts outweighing increases but having little impact on average mortgage pricing, according to Moneyfacts.

Moneyfacts finance expert Rachel Springall said the summer holiday period and bank holiday were likely contributing to the quieter level of lender repricing.

The average two-year fixed mortgage rate fell by 0.01 percentage points week-on-week, from 5.60% to 5.59%, while the average five-year fixed rate remained unchanged at 5.63%.

Despite the latest movements, both rates remain above their levels at the start of July, when the average two- and five-year fixes stood at 5.52%. However, they are slightly below the levels recorded at the start of August, when they stood at 5.63% and 5.66% respectively.

Springall said swap rates remained broadly between their 30-day highs and lows, creating uncertainty over the future direction of fixed mortgage pricing.

“The rate cuts seen from lenders this week are encouraging; however, overall average mortgage rates are higher than they were at the start of July,” she said.

The quieter pace of repricing may not continue next week as lenders return to more normal trading following the summer holiday period.

Notable rate changes this week

• Bank of Ireland Intermediaries – selected fixed rates reduced by up to 10bps.
• Bank of Ireland UK – selected fixed rates reduced by up to 10bps.
• Halifax – selected fixed rates reduced by up to 13bps via intermediaries and 11bps via direct business.
• Leeds Building Society – selected fixed rates reduced by up to 19bps, with Income Plus rates cut by up to 10bps.
• Lloyds Bank – selected house purchase fixed rates reduced by up to 11bps.
• Suffolk Building Society – selected fixed rates reduced by up to 10bps.
• TSB – selected fixed rates reduced by up to 20bps.
• Vida Homeloans – selected fixed rates reduced by up to 20bps, while others increased by 5bps.
• Gen H – selected New Build Boost fixed rate increased by 5bps.
• Hodge – RIO fixed rates increased by up to 40bps.

Tracker and discounted variable rate changes

• Earl Shilton Building Society – discounted variable mortgage rates increased by 25bps.
• Suffolk Building Society – discounted variable mortgage rates reduced by up to 14bps.