It was a week of rate reductions for fixed mortgages this week with certain lenders reintroducing sub-4% deals to the market.

According to Moneyfacts’ latest data, average two-year fixes fell 0.03% to 5.06%, average three-year fixes tumbled 0.08% to 4.95% and average five-year fixes fell 0.03% to 5.05%.

There was a marginal decrease across average ten-year fixes, down 0.01% to 5.61%.

Prominent brands that reduced fixes included Barclays, by up to 0.18%, Halifax by up to 0.10%, HSBC by up to 0.17%, Lloyds by up to 0.10%, NatWest by up to 0.15%, Gen H by up to 0.15%, Santander by up to 0.16% and finally, Virgin Money reduced its ‘intermediary exclusive’ rates by up to 0.05%.

Among the building societies to reduce rates were the West Brom Building Society by up to 0.28%, Leeds Building Society by up to 0.12%, Nationwide Building Society by up to 0.20% and Principality Building Society by up to 0.51%.

Meanwhile, Precise cut fixed rates by up to 0.10%, Kensington by up to 0.50% and Bluestone Mortgages by up to 0.30%.

Moneyfacts spokesperson Caitlyn Eastell says: “Many of the big-name brands have been reducing their fixed rate deals this week sparking debate over a potential ‘rate war’, however, the average rates don’t reflect this as they have only seen a small 0.03% drop week on week.

“Swap rates are currently sitting just above their 30-day lows, so it is possible that there could be more significant cuts in the future, especially as many economists believe there is space for two more base rate cuts this year.

“In any case prospective borrowers and remortgage customers will be glad to see that rates are dropping but those coming off a longer-term fix will see a significant increase in their monthly repayments. It is wise that borrowers are not swayed by a low headline rate and consider the whole package to ensure they are getting the best deal and if in doubt they should seek advice from a broker.”