Average fixes continued to track down this week as lenders cut rates to attract new borrowers, according to Moneyfacts data.
The average rate for a three-year fix fell by 6 basis points to 6.39%, while the average rate for two-year and five-year fixes fell by 4 basis points to 6.62% and 6.11%, respectively
The 10-year average rate edged lower by a single basis point over the week to 5.80%.
Two-year fixes
The largest fall at this term came at the 50% LTV average rate, which was down 6 basis points to 7.47%. The smallest decline saw the 70% LTV average rate slip by a single basis point to 6.87%.
The 95% LTV and the 90% LTV average rates were both down by 3 basis points to 6.85% and 6.56%, respectively.
Three-year fixes
The biggest declines in this level saw the 85% LTV and the 80% LTV average rates both tumble by 9 basis points to 6.48% and 6.54%, respectively.
The smallest falls saw the 95% LTV, 70% LTV and 60% LTV average rates all fall by 4 basis points to 6.55%, 6.42% and 6.21%, respectively.
The 90% LTV average rate was 6 basis points lower at 6.42%.
Five-year fixes
The largest fall in this term came at the 80% LTV average rate, which fell by 6 basis points.
The slimmest decline saw 95% LTV and 90% LTV average rates both slip by 2 basis points to 6.18% and 5.95%, respectively.
10-year fixes
The largest decline at this level saw the 90% LTV average rate plunge by 18 basis points to 5.62%.
The was no other change at this level, other than the 85% LTV average rate falling by 2 basis points to 5.76% this week.
Moneyfacts finance expert Rachel Springall says: “Fixed-rate reductions took precedence over rate rises this week, as many lenders moved to tweak the rates on selected ranges. “These movements have led to a fall in the overall average two- and five-year fixed mortgage rates for a consecutive week.
“A few lenders made notable rate reductions on their selected fixed rate deals this week, such as Scottish Building Society by up to 80 basis points, Progressive Building Society by up to 74 basis points and Kent Reliance by up to 60 basis points.
“Some prominent bands made selected fixed-rate reductions this week, such as Halifax by up to 50 basis points for direct and intermediary business, Santander by up to 14 basis points, Virgin Money by up to 12 basis points, Barclays Bank by up to 10 basis points.
“There were more fixed rate reductions taking place with Accord Mortgages by up to 45 basis points, Precise Mortgages by up to 30 basis points, MPowered Mortgages by up to 22 basis points, Digital Mortgages by Atom Bank by up to 20 basis points and Clydesdale Bank, also by up to 20 basis points.
“Not to go unnoticed, there were several building societies making selected fixed rate cuts from Principality Building Society by up to 36 basis points, Nottingham Building Society by up to 20 basis points, Coventry Building Society by up to 22 basis points, Leeds Building Society by up to 20 basis points, Nationwide Building Society by up to 29 basis points, Skipton Building Society by up 10 basis points.
“Some eye-catching deals surfaced this week, including a three-year fixed deal from MPowered Mortgages, priced at 5.74% and available at 75% loan-to-value, it carries an attractive incentive package, which includes £500 cashback.
“A few more lenders have moved to increase their standard variable rates this week, such as Post Office Money by 25 basis points, and Kensington moved to increase its revert rate by 60 basis points.
“It’s expected that fixed rates will continue to reduce as Swap rates fall, but all eyes will no doubt be on next week’s Bank of England base rate decision.
