Average rates dropped across all major fixed terms this week, shows new data from Moneyfacts.

For a two-year fix, the average rate fell 7 basis points to take it to 6.48%. A 7 basis point drop also occurred on the headline three-year fixed rate, which finished the week at 6.76%.

Meanwhile, the average rate for a five-year fix decreased by 9 basis points, moving to 6.34%, while the average rate for a 10-year fix slipped 3 basis points, leaving its price at 5.63%.

Two-year fixes

There were eye-catching drops at 85% LTV and 70% LTV, where a 10 basis point fall at each took their respective rates to 6.58% and 6.42%.

And at 65% LTV, the average rate lost 120 basis points, moving to 6.80%.

There was also significant change at 95% LTV, where a 5 basis point loss left the average price at 6.59%.

Three-year fixes

At 95% LTV and 90% LTV, a 2 basis point drop apiece gave average prices of 6.50% and 6.21%, respectively.

A bigger change took place at 75% LTV, the rate for which fell 10 basis points, taking it to 6.61%.

And at 65% LTV, the average rate fell 125 basis points, to 7.52%.

Five-year fixes

The biggest change here was at 85% LTV, which lost 19 basis points, giving a price of 6.30%.

Meanwhile, at 90% LTV, the action was not far behind, with the rate dropping 16 basis points, to 6.23%.

Further down the LTV range, at 65% LTV, a 50 basis point fall left the average rate at 7.60%.

10-year fixes

The largest drops here occurred at 95% LTV, where the average rate fell 6 basis points, to 6.35% and at 90% LTV, which dropped 4 basis points, to 5.95%.

Moneyfacts finance expert Eleanor Williams says: “Very much a mixture of changes across the mortgage market this week, but some small signs of recovery for the sector as we start to see slight reductions in some of the average fixed rates. Some providers have begun to test the waters with the launch of more competitive new deals, and some have reduced rates by fairly notable amounts.

“Yorkshire Building Society may have increased a couple of its deals by up to 0.37% in its latest update, but it also made reductions of as much as 1.34% to selected fixed rates. Skipton Building Society has today cut its two-year fixed rates by up to 0.65%. Santander made cuts of up to 0.50% to some of its fixed offerings this week, and Accord Mortgages also made rate reductions of up to 0.53%, as well as slashing selected product fees by £500.

“TSB has refreshed its range, now offering its purchase products to both first- and second-time buyers. Skipton Building Society has launched new fixed rates without a fee and also new ‘Large Loan’ deals too. Barclays Mortgage was another lender to return new products to market, including a new ‘Mortgage Guarantee Scheme’ option at 95% LTV. A number of the mutuals have also launched new products, including West Brom Building Society, Darlington Building Society, and Tipton & Coseley Building Society.

“However, availability in the sector continues to fluctuate and we are still processing various withdrawals from providers as well. Amongst the lenders to make product withdrawals this week were Vida Homeloans pulling products with a maximum LTV of 85%, Metro Bank, which cut some of its ‘Large Loan’ options and Yorkshire Bank, which removed a couple of 95% LTV deals from sale.”