Two year fixed mortgages across all LTVs fell by 0.02% to an average of 5.47% in the week ending 20 September 2024, according to Moneyfacts.

Average three- and five-year fixes  across all LTVs also fell by 0.02% to an average of 5.28% and 5.13% respectively.

However, the average rate for a 10-year fix across all LTVs rose by 0.04% to 5.66% this week.

Prominent brands to reduce selected fixed rates this week included Virgin Money by up to 0.16%, Halifax by up to 0.09%, Santander by up to 0.29% and first direct by up to 0.35%.

Building societies that made rate moves this week included Principality Building Society by up to 0.25%, Nottingham Building Society by up to 0.25%, Darlington by up to 0.20%, Cambridge by up to 0.50%, Saffron by up to 0.40%, Leeds Building Society by up to 0.10%, Furness by up to 0.36%, Teachers by up to 0.36% and Skipton Building by up to 0.19%.

Foundation Home Loans cut rates by up to 0.30% on its ‘special’ fixed mortgages and Hodge reduced prices by up to 0.20% on its ‘hodge resi’ fixed range.

Moneyfacts finance expert Rachel Springall says: “There were some eye-catching deals to surface this week, including a two-year fixed rate deal from Leeds Building Society, priced at 5.63% and available at 95% loan-to-value for house purchase customers, it includes a free valuation and £500 cashback incentive and does not charge a product fee. This could be an attractive choice for those with a limited deposit and are hoping to minimise the upfront cost of their mortgage.

“The market noted some substantial reductions to fixed rates this week, leading to a fall in the overall average two- and five-year fixed rates week-on-week. The sizeable reductions provide a positive sentiment for the market, but there will be borrowers out there slightly disappointed that the Bank of England base rate remains unchanged.

“However, there are expectations for the rate to be cut twice before the year is over, or at least once by a notable margin. Borrowers should not wait around for this to happen, as they can find some attractive deals that have improved over recent weeks thanks to a favourable swap rate market. Seeking advice is wise to navigate the mortgage maze and find the most appropriate deal based on its overall true cost.”