Average mortgage rates edged down by smaller margins this week as fewer lenders made drastic cuts, weekly figures from Moneyfacts show.

Two-year fixed rates dropped by 3 basis points from an average of 5.6% last Friday to 5.57% today.

Average three-year fixes ticked down by 2bps from 5.39% to 5.37% over the same period

Five-year fixed rates also dipped 2bps from an average of 5.23% to 5.21%

The average 10-year fix remained unchanged at 5.63%.

Prominent brands to reduce selected fixed rates this week included TSB by up to 45 bps and Virgin Money by up to 28 bps.In the mutual sector, Melton Building Society cut rates by up to 34 bps and Mansfield Building Society by up to 60 bps.

Other big reductions included Kent Reliance by up to 105bps, The Mortgage Lender by up to 35bps, Clydesdale Bank by up to 42bps, Accord by up to 35bps, MPowered by up to 16 bps and LendInvest by up to 15bps.

Moneyfacts finance expert Rachel Springall says: “The mortgage market was much calmer for rate re-pricing this week, but there were some lenders cutting deals by sizeable margins.

“These moves lead to a drop in overall average rates week-on-week.

“There were some eye-catching deals to surface this week, including a five-year fixed rate deal from Virgin Money, priced at 4.59% and available at 90% loan-to-value for house purchase customers, it charges a product fee of £995, which is offset by a £300 cashback incentive, so this could be an attractive choice for with a limited deposit.

“It may have been a more subdued week for the number of lenders making rate cuts, but the market could spring into more action once September begins. 

“Swap rates are still lower than they were a month ago, so lenders will be taking this point into consideration.”