There have been some ‘eye-catching deals’ this week with the mortgage market ‘awash with rate cuts’, according to Moneyfacts latest rate watch.

For two-year fixed all LTVs, the average rate has dropped slightly – from 6.7% on 1 September to 6.96% on 8 September. 

Two-year fixed rates at 95% LTV have fallen by from 6.91% to 6.88%, while a two-year fixed for 85% LTV has reduced from 6.79% to 6.74% over the past week.  

Meanwhile, the average rate for a two-year fix at 75% LTV has fallen by 0.04% from 6.58% to 6.54%. 

For a five-year fixed at 90% LTV the average rate has decreased from 6.04% to 5.97%; while a five-year fix at 80% LTV has decreased from 6.32% to 6.29%. 

Those taking on a five-year fix on 70% LTV, will now, on average, pay 6.45%.

Some prominent brands made selected fixed rate reductions, such as TSB by up to 0.20%, NatWest by up to 0.18% and Santander by up to 0.11%.

First Direct cut its two-year fixed rates by up to 0.15% and its five-year fixed deals by up to 0.30%.

Lloyds Bank cut by up to 0.13%, HSBC by up to 0.20% and Halifax by up to 0.13%.

More fixed rate reductions came from Virgin Money, which reduced its ‘Greener’ deals by up to 0.31%, Yorkshire Bank up to 0.20%, Clydesdale Bank up to 0.25% and Gen H by up to 0.17%.

Accord Mortgages made reductions to their selected fixed mortgages by up to 0.98%, but also increased some deals by up to 0.11%.

Finally, Yorkshire Building Society made cuts by up to 0.41% and Cumberland Building Society by up to 0.21%.

Moneyfacts finance expert Rachel Springall says: “The fixed rate mortgage market was awash with rate cuts this week, which has led to a fall to the overall average two- and five-year fixed mortgage rates.

“Some eye-catching deals surfaced this week, including a three-year fixed deal from first direct, priced at 5.79% and available at 75% loan-to-value, which carries an attractive incentive package and a reasonable product fee of £490.

“A few more lenders have moved to increase their standard variable rates this week, such as Together, Yorkshire and Clydesdale Bank, Virgin Money, Newbury Building Society and Stafford Railway Building Society, all by 0.25%.

“Dudley Building Society moved to increase its revert rate by 0.20%.

“As fixed rates fall and revert rates rises, its imperative borrowers take time to review their mortgage, particularly if they are coming to the end of the fixed deal.

“If borrowers do have some time left on their mortgage, such as into 2024 or later, it’s a wise choice to consider overpaying on their mortgage.”

However, she stressed that anyone thinking of this should seek independent advice to “see if it’s the right option for them.”