For another consecutive week, fixed rate reductions took charge in the mortgage market, with some providers making hefty reductions.

As Moneyfacts finance expert Rachel Springall explains: “The surge of cuts across the mortgage market resulted in a drop to the overall average two- and five-year fixed mortgage rates”.

“There were a few prominent brands making selected fixed rate reductions this week, such as Lloyds Bank by up to 0.68%, TSB by up to 0.30%, HSBC by up to 0.27% and Halifax by up to 0.13%”.

She also highlights several building societies cutting rates this week, those lenders to make cuts to selected fixed rates included Family Building Society by up to 0.50%, Coventry Building Society by up to 0.45%, West Building Society by up to 0.35%, Skipton Building Society by up to 0.27%, Leeds Building Society by up to 0.25%, Nationwide Building Society by up to 0.25%, Suffolk Building Society by up to 0.20% and Progressive Building Society by up to 0.20%.

There were more fixed rate reductions taking place with Aldermore by up to 0.65%, Co-operative Bank for Intermediaries by up to 0.23% and Virgin Money by up to 0.29% on selective intermediary exclusive deals.

One lender to make slight increases was Gen H, which increased fixed rates max 95% LTV by 0.15% and 90% LTV by 0.10%, but they had made reductions of up to 0.20% a week ago, with the exception of deals at 95% LTV.

Springall says a few eye-catching deals also surfaced this week, including a three-year fixed deal from first direct, priced at 5.49% and available at 75% loan-to-value, it carries free valuation for all borrowers and free legal fees for those remortgaging and charges a small booking fee of £490.

“The sentiment across the market is leaning for more fixed rate cuts in the weeks to come, and some lenders have been vocal that the SWAP market is a factor into their pricing decisions in recent weeks”.