Average fixed-rate mortgage prices continued to fall this week, with building societies leading the charge, according to the latest Moneyfacts rate watch.

Moneyfacts found that the average two-year fixed rate homeloan fell by 2bps to 4.78%, while the typical five-year fix was down by 1bps to 4.87%.

Last week saw the average two-year and five-year fix fall by 3bps to 4.8% and 4.88%, respectively.

The cuts this week included some sizable reductions from Nationwide of up to 20bps. Other notable reductions were up to 31bps from Newcastle Building Society and 29bps from West Brom Building Society.

The mortgage type with the biggest cut this week were two-year fixes to 70% LTV, which saw a 7bps average reduction in price to 4.62%.

The biggest rise was seen on five-year fixes to 100% LTV, which rose 7bps to an average of 5.56%.

Moneyfacts finance expert Rachel Springall said: “Fixed rate mortgage cuts dominated the market this week, with some of the biggest high street brands passing on reductions. Building societies made the most sizeable cuts, and the outlook for further reductions looks promising.

“This is down to swap rate movements, with the two-year swap hovering around 30-day lows, however, longer-term fixed rates are not following the same pattern. This may be reflected on rate changes over the next few weeks, as it has been shown within average market rates, with two-year deals falling by larger margins.”