Average five-year fixed rates were the biggest movers this week – down by 4 basis points to 5.37%, according to Moneyfacts’ weekly data.
The reductions to average rates were not as steep as last week when two-year rates fell by 9bps and five-year rates by 6bps.
But there were still plenty of lenders making substantial price cuts, with some lowering rates by up to 40bps.
And yesterday’s base rate cut from the Bank of England was positive news for brokers and borrowers alike.
Two-year fixed rates
Average two-year fixes dipped by 3bps from 5.79% last Friday to 5.76% today, following a 9bps fall over the week before.
This means they have dropped by 12bps over the past fortnight from 5.88% on July 19.
The past week’s rate cuts were fairly evenly spread across the LTV tiers, although the 75% and 60% LTV bands saw a slightly bigger drop of 4bps.
Three-year fixed rates
Average three-year fixed rates moved only modestly, down by 2bps to 5.52%.
Some LTV tiers saw no change at all while others ticked down by a couple of basis points.
Five-year fixed rates
Average five-year fixed rates were down by 4bps from 5.41% to 5.37%.
This means they have come down by 10bps over the past fortnight from 5.47%.
Over the past week the 70% LTV tier saw the biggest reduction, with average rates down 6bps to 5.76%.
However, average rates at the slightly higher 75% LTV tier were much cheaper at 5.25%, down from 5.28% a week ago.
Ten-year fixed rates
There was no movement in average ten-year fixed rates, which remained at 5.93% for the second consecutive week.
Moneyfacts personal finance expert Rachel Springall says: “It has been a big week for the mortgage market, not only did some of the biggest banks make cuts to fixed rate deals, but the Bank of England base rate cut has led to rate drops on tracker mortgages and penned changes to revert rates.”
Among the lenders to make the biggest reductions over the past week were Landbay with cuts of up to 40bps, MPowered which reduced rates by up to 37bps, Co-op by up to 36bps, Halifax by up to 33bps and Clydesdale by up to 33bps.
Many others including Lloyds, Yorkshire Building Society, Bath and Kensington made cuts of 20 bps or more to some of their deals.
