Every average fixed rate dropped this week, Moneyfacts data shows.

The average rate for a two-year fix fell 10 basis points, to 5.53%, the three-year fix lost 21 basis points, coming to 5.54%, and the five-year fix saw its average rate lose 15 basis points, moving to 5.30%.

Meanwhile, the average rate for a 10-year fix slipped 17 basis points, finishing the week at 5.47%.

Two-year fixes

At 85% LTV and 65% LTV, a 17 basis point reduction left the average rates here at 5.52% and 5.71%.

This was followed closely by action at 75% LTV, where the average rate fell 13 basis points, to 5.41%.

Three-year fixes

There were many big cuts within this fix this week. The most significant took place at 70% LTV, where the average rate collapsed by 152 basis points, landing at 6.16%.

And at 80% LTV, the average rate was cut by 28 basis points, giving a new figure of 5.65%.

The 60% LTV average rate also saw some action, dropping 22 basis points to come to 5.43%.

Five-year fixes

The biggest change here took place at 65% LTV, where the average rate lost 38 basis points, giving a Friday price of 5.81%.

At 75% LTV, the average rate dropped 22 basis points, moving to 5.21% and, at 90% LTV, a 16 basis point reduction left its average rate at 5.25%.

10-year fixes

At 65% LTV, the average rate fell 50 basis points, which took it to 6.61%, while at 60% LTV, the average rate lost 21 basis points, finishing the week at 5.50%.

Further up the LTV spectrum, at 90% LTV, the average rate dropped 10 basis points, giving 5.81%.

Moneyfacts finance expert Rachel Springall comments: “Mortgage interest rate cuts took precedence this week, as various lenders reduced their initial fixed rates as well as discounted variable, and tracker variable rate deals.

“There were notable big bank brands making cuts this week, including Santander reducing fixed rates by up to 0.59% and both HSBC and NatWest reducing fixed by up to 0.10%.

“However, the biggest rate cuts this week came from other lenders, such as Virgin Money, which slashed up to 0.73% off its fixed rate mortgages.

There were an abundance of building societies cutting down their fixed rate pricing, include Nationwide which reduced selected fixed rates by up to 0.20% and Yorkshire Building Society reducing its fixed deals by 0.75%. It will be interesting to see whether large cuts will continue to dominate in the weeks to come.”