Fresh data from Moneyfacts shows the average two-year fixed rate dropping 2 basis points this week, from 2.49% to 2.47%.

The average five-year fix also dropped 2 basis points, moving from 2.72% to 2.70% during the week, while the average three-year fix was static at 2.48% and the average 10-year fix stayed still at 2.99%.

Two-year fixes

There was a flurry of movement at the higher-LTV end of this fix. At 95% LTV, the average rate slipped by 2 basis points to 3.62%, at 90% LTV the average rate fell by a not-insubstantial 5 basis points to 2.97% and, at 85% LTV, the average rate lost 3 basis points, finishing the week at 2.68%.

It was at 65% LTV where the biggest change occurred – the average rate dropped from 2.47% to 2.37%, a difference of 10 basis points.

Three-year fixes

There was relatively modest movement at 85% LTV this week, the average rate of which fell 4 basis points, from 2.66% to 2.62%. At the same time, a fall of 5 basis points saw the average rate at 70% LTV dip from 2.35% to 2.30%.

However, at 65% LTV, the average rate shot up by a chunky 66 basis points, going from 2.34% to 3%.

Five-year fixes

At 95% LTV, the average rate slipped by 1 basis point, to 3.87% and, at 90% LTV, a more significant change saw the average rate decrease from 3.38% to 3.34%.

Meanwhile, at 85% LTV, the average rate lost 3 basis points, coming to 2.95%.

10-year fixes

There were no movements significant enough to register here this week.

Moneyfacts finance expert Eleanor Williams says: “Lenders are continuing to compete this week with the notable trend still rate reductions, contributing to further falls in the overall average two- and five-year fixed rates.

“This week saw Virgin Money not only slash a variety of its fixed rates by as much as 0.83% but also tweak some of its ‘Greener’ mortgages, with reductions of up to 0.75%.

“TSB made amendments to some of its deals for remortgage customers with cuts of up to 0.75%, while Halifax focused on products for those purchasing, making reductions of up to 0.35%.

“Other providers to reduce rates included Coventry Building Society making cuts of up to 0.40% on various two-year fixed rates and of up to 0.44% on selected five-year fixed products, and also Santander which tweaked its fixed rate range as well, with some deals seeing drops of up to 0.33%.

“Those looking for products in the higher LTV brackets may wish to note that Newcastle Building Society made cuts of up to 0.41% on its core range of deals at 90% and 95% LTV, as well as amending the fees and incentives on a number of its products, while Skipton Building Society launched a couple of new deals for those purchasing at 95%, available for new build properties.”