The average rate for a three-year fix dropped by 6 basis points this week to 2.53%, shows data from Moneyfacts.
Meanwhile, the average rate for a two-year fix slid by 1 basis point, ending the week at 2.52%.
For a five-year fix, the average rate was static at 2.76% as it was for a 10-year fix, at 2.99%.
Two-year fixes
Within the 95% LTV category of products, the average rate dropped 3 basis points, going from 3.71% to 3.68%.
And at 90% LTV, the average rate fell by 3 basis points as well, finishing the week at 3.12%.
Three-year fixes
It was an extremely busy week within this fix.
At 95% LTV, the average rate tumbled 11 basis points, moving from 3.79% to 3.68%.
At the same time, the average rate at 60% LTV fell by 11 basis points too, from 1.81% to 1.70%.
These were not the only significant changes, however: at both 90% LTV and 85% LTV the average rate fell by 8 basis points, to 3.26% and 2.67%, respectively while at 80% LTV the average rate lost 4 basis points to come to 2.45%.
Five-year fixes
A quiet week for the headline rate was reflected by minimal movement within this fix.
At 95% LTV, the average rate lost 2 basis points, moving from 3.94% to 3.92%, and at 90% LTV, the average rate dropped 3 basis points, from 3.48% to 3.45%.
10-year fixes
There was no movement within this fix this week.
Moneyfacts finance expert Rachel Springall comments: “This week the market has moved in a positive direction, with several lenders making significant reductions to different options in their range.
“One of the most headline grabbing this week was Nationwide, which reduced rates for purchase customers up to 0.40% and for remortgage customers up to 0.30% and introduced some new three-year fixed deals. Nationwide now offer the lowest, two-, three-, and five-year fixed rate on the market and the lowest since our electronic records began.
“Borrowers searching for a deal with a limited deposit will find Metro Bank offering lower rates at 90% and 95% LTV this week as they made reductions of up to 0.20%.
“Elsewhere, Accord made reductions by up to 0.25%, Nottingham Building Society reduced rates by up to 0.65% and Coventry Building Society made reductions to various LTVs, including 90% LTV, with the latter cutting its two- and five-year fixed deals at 90% by up to 0.26%.
“Skipton Building Society also improved its range with rate cuts by up to 0.50% and launched new fixed deals at 90% and 95% LTV, Leek United Building Society launched new deals at 85% and 95% LTV and made rate reductions by up to 0.14% and Leeds Building Society also joined in the action, with rate cuts of up to 0.25% and the launch of a new 95% LTV deal.”
“On top of all these changes, a few prominent lenders also made notable fixed rate reductions, including NatWest by up to 0.40% and Santander by up to 0.26%.
