The average two-year fixed rate dropped more steeply than in previous weeks, falling by 9 basis points from 5.88% to 5.79%, the latest figures from Moneyfacts show.

It comes after major lenders continued to cut prices and the lowest two-year fixed rate dipped beneath 4% for the first time since April.

Weekly rate watch data from Moneyfacts shows that average five-year fixed rates also decreased since last Friday, but by a lesser margin of 6bps.

Two-year fixed rates

Lenders focussed much of their rate cutting at higher LTV products, as average two-year rates at 80% LTV were down 15bps to 5.79% and at 90% LTV they were down 12bps to 6%.

In the 95% and 75% LTV tiers average rates were down by 7bps and at 65% LTV they were down 8bps.

Three-year fixed rates

Average three-year rates were down by 5bps from 5.59 to 5.54%

The 95% LTV tier saw the steepest reduction, with average rates down 11bps from 6.11% to 6%.

Five-year fixed rates

Overall average rates across all tiers were down by 6bps from 5.47% to 5.41%.

The biggest reductions were to 90% LTV rates, with the average down by 12bps from 5.6% to 5.48%.

The 95%, 85%, 80% and 65% LTV tiers all saw average rates drop by 8bps.

Ten-year fixed rates

Average 10-year fixed rates were unchanged week on week at 5.93%.

Moneyfacts finance expert Rachel Springall says the past week has seen over a dozen lenders cut rates, including some of the largest banks and building societies.

Some of the biggest movers were MPowered, cutting rates by up to 49bps Virgin Money by up to 45bps,  Barclays Mortgages by up up to 36bps, Lendinvest by up to 35bps, Gen H by up to 30bps, Nationwide by up to 24bps, and TSB by up to 20bps.