The average rate for a three-year fixed rate mortgage dropped 2 basis points this week to 2.66%, shows data from Moneyfacts.
For a 10-year fix, the average rate slipped by 1 basis point to 2.97% while at the same time, the average rate for a two-year fix was static at 2.55%.
The average rate for a five-year fix didn’t move this week either, sticking at 2.78%.
Two-year fixes
The most significant change in this group occurred at 70% LTV this week, where the average rate lost 11 basis points, going from 2.40% to 2.29%.
Elsewhere, the average rate at 80% LTV fell 2 basis points to 2.56%, while at 95% LTV the average rate gained 2 basis points, climbing to 3.78%.
Three-year fixes
At 95% LTV, the average rate dropped 1 basis point to 3.83% and at 85% LTV, the average rate decreased by 3 basis points, from 2.86% to 2.83%.
Changes were minimal elsewhere.
Five-year fixes
Despite the headline rate not budging this week, there were a number of changes at the different LTV brackets.
At 70% LTV, the average rate fell 10 basis points, going from 2.61% to 2.51% and at 80% LTV the average rate fell by 2 basis points, ending the week at 2.74%.
Meanwhile, at 95% LTV, the average rate gained a point, moving to 4.01%.
10-year fixes
There were two changes here this week: at 75% LTV the average rate lost a point, finishing at 2.76% and at 60% LTV the average rate dropped 5 basis points, going from 2.50% to 2.45%.
Moneyfacts finance expert Eleanor Williams says: “Product choice for borrowers continues to improve in the residential sector, with some prominent brands continuing to update their ranges to entice customers.
“Virgin Money led the rate re-pricing charge with reductions of as much as 0.52% on selected fixed rates, and TSB also made rate cuts of up to 0.50% this week. Nationwide cut rates on various purchase products by up to 0.35%, with selected remortgage deals receiving reductions of up to 0.15%.
“Halifax focused on remortgage products in its latest update, balancing rate cuts of up to 0.08% with increases of up to 0.07%.
“Amongst various changes to its range and criteria, Santander applied rate reductions of up to 0.20% on selected fixed rate products, as did Leeds Building Society, which also made reductions of up to 0.33% on multiple fixed rate RIO products.”
