The average rate for a two-, three- and five-year fix dropped this week while the average rate for a 10-year fix was static, shows fresh data from Moneyfacts.
The average two- and three-year fixes fell 3 basis points apiece, falling to 2.44% and 2.45%, respectively.
Meanwhile, the average rate for a fix-year fix lost 2 basis points, moving to 2.68%. At the same time, the average rate for a 10-year fix remained at 2.99%.
Two-year fixes
There were two significance changes at the top LTV brackets here, with the average rate for a 95% LTV product dropping from 3.62% to 3.59% and, at 90% LTV, decreasing from 2.97% to 2.91%
It was at 65% LTV, however, where bigger changes developed: in this category, the average rate lost 22 basis points, tumbling from 2.37% to 2.15%.
Three-year fixes
At 95% LTV, the average rate shed 3 basis points, finishing the week at 3.55%.
At 90% LTV there was a bigger movement – the average rate lost 8 basis points, going from 3.18% to 3.10%. And at 85% LTV, the average rate dropped 4 basis points to come to 2.58%.
As in the two-year fixes though, the biggest change was at 65% LTV. An eye-popping fall of 86 basis points saw the average rate drop from a clean 3% to 2.14%.
Five-year fixes
More changes in the higher-LTV spaces – at 95% LTV the average rate slipped from 3.87% to 3.84% and, at 90% LTV, the rate moved from 3.34% to 3.29%.
Again, the 65% LTV bracket harboured the biggest change – a move from 2.55% to 2.37% meant a slide of 18 basis points.
10-year fixes
A quiet week at this fix led to no changes being recorded.
Moneyfacts finance expert Eleanor Williams says: “In a similar theme to recent weeks, lenders are continuing to update their product ranges to attract new borrowers. While rate re-pricing is still one of the most significant trends in the residential mortgage sector, we have also recorded numerous amendments to fees and incentives as a variety of providers tweak their offerings.
“Yorkshire Building Society made cuts to fixed rate mortgages of up to 0.65%, while also updating some cashback incentives, echoing similar changes made by Accord Mortgages earlier in the week where rates were cut by up to 0.40%.
“Virgin Money reduced a selection of its fixed rates by up to 0.63% and launched a couple of remortgage deals via intermediaries, while Barclays made rate cuts of up to 0.22% to selected fixed rates and of up to 0.32% on some variable tracker deals.
“From the mutuals, we saw Furness Building Society cut rates on a handful of its fixed rates by up to 0.50%, as well as launch deals in the 95% LTV sector. Leek United Building Society made numerous changes, which included amendments to features such as fees, incentives and minimum advance amounts on a couple of products, while Ipswich Building Society also tweaked fees and reduced a number of rates in its range by up to 0.44%.”
