Rates dropped at every major fix again this week, with the three-year average leading the charge, Moneyfacts reports.
Said three-year fix fell 15 basis points to 5.39%, with the 10-year fix not far behind – its average rate dropped 12 basis points to 5.35%.
Meanwhile, the average rate for a five-year fix lost 7 basis points, moving to 5.23% and the average two-year fix fell 6 basis points, to 5.47%.
Two-year fixes
There was a 7 basis point drop at both the higher and lower LTV ends of this fix – at 95% LTV, the average rate fell to 5.99% and, at 60% LTV, to 5.08%.
At the same time, the average rate for at 80% LTV reduced by 5 basis points, to 5.61%.
Three-year fixes
At 95% LTV, the average rate lost 4 basis points, taking it to 5.68% and, at 75% LTV, the average rate fell significantly more – by 16 basis points, to 5.17%.
The biggest drop took place at 60% LTV, however, with a 29 basis point reduction taking the average rate to 5.14%.
Five-year fixes
Most of this week’s action at this fix was found at the upper end – at 95% LTV, the average rate shed 11 basis points, coming to 5.53% and, at 90% LTV, a drop of 9 basis points took the average price to 5.16%.
At 60% LTV, meanwhile, the average rate lost 6 basis points, ending the week at 5.01%.
10-year fixes
The most significant change occurred at 75% LTV within this fix, where the average rate fell 19 basis points, moving it to 4.90%.
The 60% LTV rate, meanwhile, lost 18 basis points, giving a Friday price of 5.32%.
And, at 95% LTV, the average rate dropped 9 basis points, moving to 5.92%.
Moneyfacts finance expert Eleanor Williams says: “The residential mortgage sector saw the implementation of further positive rate re-pricing this week. Some of the most significant rate slashing came from TSB this morning, where selected fixed deals have seen cuts of as much as 1.80%.
“Barclays Mortgage made some notable cuts as well this week, with selected fixed options receiving cuts of up to 1.69% and selected tracker deals of up to 0.63%. Halifax started the week by applying rate cuts of up to 0.80% to various of its fixed options and introducing new fixed rates for remortgage borrowers, as well as adding new variable tracker rates to its range.
“first direct made selected reductions of up to 0.40% which saw a number of its products find their way into our Best Buy tables. Santander made some rate cuts across fixed and variable tracker deals this week of up to 0.15%, while also introducing a couple of new fixed deals to market. Accord Mortgages added a handful of new products, along with making cuts of up to 0.57% on some of its deals.
“From the mutuals, Cumberland Building Society applied reductions of up to 0.62% across fixed rate offerings, Coventry Building Society combined cuts of up to 0.38% on fixed rate options with increases of up to 0.35% on variable trackers with an end date of 30.6.25, as well as launching new 90% and 95% LTV deals.
“Melton Building Society cut its fixed rates by up to 0.25% and discounted variable rates by up to 0.15% and Newcastle Building Society refreshed its range with the addition of several new fixed offerings and a couple of withdrawals, too.”
