Average fixed mortgage rates continued to fall this week as more than a dozen lenders cut prices, Moneyfacts’ latest rate watch indicated.

Among the larger lenders to make reductions were TSB who cut fixed rate prices by up to 0.40%, Virgin Money who applied decreases of up to 0.30%, NatWest dropped rates by up to 0.19% and both HSBC and Halifax reduced their fixed rate costs by up to 0.15%.

Building societies were also active with rate cuts, including Nationwide who applied cuts of up to 0.25%, the Melton by up to 0.30%, Cumberland Building Society by up to 0.20% and Suffolk Building Society by up to 0.20%,.

The West Brom cut fixed rate prices by up to 0.20%, Vernon Building Society by up to 0.30%, Leek Building Society by up to 0.18% and Principality Building Society by up to 0.10%.

Other lenders that reduced rates included Clydesdale Bank by up to 0.39%, TSB by up to 0.35%, MPowered Mortgages by up to 0.27%, The Co-operative Bank by up to 0.09%, Vida Home loans by up to 0.30% and Atom Bank by up to 0.30% on its ‘near prime’ range.

Moneyfacts finance expert Rachel Springall says: “It is encouraging to see another week of fixed rate cuts, as lenders pass lower borrowing costs onto new customers. The market has gradually passed on lower borrowing costs to new applicants, and the mortgage market has been more active in the aftermath of the summer holidays. With the Bank of England base rate decision day next week, the expectations for a cut among economists is unlikely. Borrowers looking for a new deal would be wise to review the latest deals eligible to them with an independent broker.”