The average rate for a two-year fix fell from 2.42% to 2.36% this week, shows fresh Moneyfacts data.

Meanwhile, the average rate for a three-year fix slipped by 1 basis point to 2.38% and the average rate for a five-year fix dropped 3 basis points, to 2.62%.

Throughout this time frame, the average rate for a 10-year fix stayed the same all week – at 2.99%.

Two-year fixes

There was plenty of activity at this fix this week.

At 95% LTV, the average rate decreased by 5 basis points, to 3.54% and, at 90% LTV, the average rate lost 8 basis points, finishing the week at 2.79%.

A 12 basis point drop at 85% LTV saw the rate come to 2.53% and at 80% LTV, the average rate lost 7 basis points, bringing it to 2.45%.

Things continued to slide at 75% LTV too, with a loss of 9 basis points seeing the average rate end the week at 2.02%.

However, at 70% LTV, the rate bucked this trend, moving up by 8 basis points to 2.23%.

Three-year fixes

There was a drop at the higher end of this fix, with the 95% LTV average rate losing 6 basis points to 3.45%.

And at 70% LTV the average rate decreased by 4 basis points, which led to a rate of 2.02% on Friday 3 September.

The biggest change occurred at 65% LTV though, where the average rate lost 24 basis points, going from 2.14% to 1.90%.

As with the two-year fix, there was one move upwards – at 75% LTV, the average rate climbed by 6 basis points to 1.84%.

Five-year fixes

At 95% LTV, the average rage slipped by 2 basis points, which led to a rate of 3.83% at the end of the week and at 90% LTV, a loss of 6 basis points saw the average rate come to 3.20%.

Here there was a rate gain too – at 70% LTV, the rate moved 7 basis points from 2.28% to 2.35%.

10-year fixes

A quiet week for the longer-term fix – there was no change significant enough to register.

Moneyfacts finance expert Rachel Springall says: “A notable trend in changes this week has been centred on higher LTV deals, with various options at 80%, 85%, 90% and 95% either receiving a rate cut or have been launched. This is positive to see both competition in rates but also a growth in options available to borrowers will smaller deposits or equity and we may even see more to surface in the coming weeks.

“Yorkshire and Clydesdale Bank made reductions of up to 0.30% on selected 85% and 90% LTV direct deals, with the latter also cutting intermediary business by up to 0.28%. Barclays Mortgage reduced selected fixed rates up to 0.28%, with its 85% LTV two-year fixed deal seeing a drop of 0.14% to now be priced at 1.64% but also reduced selected tracker rates by up to 0.53% and another notable high street brand, TSB, reduced selected fixed rates on its 90% and 95% LTV two year fixed deals.

“Lloyds Bank made cuts up to 0.58%, including a cut of 0.46% on its 85% LTV two year fixed mortgage and Halifax made fixed rate cuts of up to 0.42% on intermediary deals and up to 0.35% on direct deals, one of the largest cuts to intermediary business has been on its two-year fixed 85% LTV deal at 2.61% priced down to 2.19%.

“Gatehouse Bank launched new 90% 95% LTV deals and Reliance Bank also adjusted its range and launched new ‘key worker’ fixed rates at 75%, 90% and 95% LTV. Bank of Ireland reduced its 90% LTV fixed rates but also doubled its cashback offered from £250 to £500.

“Among the mutuals, West Brom reduced a selection of its 95% mortgages, one of which is now priced at 3.29% after a 0.20% cut and Dudley Building Society launched new discounted variable deals at 85% and 90%. Principality Building Society also made reductions this week by up to 0.77%, with its 85% deal cut down from 3.20% to 2.43% to 31 January 2025.

“Other changes to be seen this week were on low rate mortgage deals, with Leeds Building Society reducing rates by up to 0.36% seeing it enter the sub 1% market. It now offers a two-year fixed rate of 0.99% after a cut of 0.08%. Nationwide also made moves on a significant number of its two-, three- and five-year mortgage range by up to 0.40% and some of its sub-1% deals have been further cut as a result.”