Average rates for fixed mortgages dropped this week, reversing last week’s action, shows new Moneyfacts data.

The average rate for a three-year fix made the most significant move, losing 8 basis points to finish the week at 2.26%.

Meanwhile, the average rate for a five-year fix dropped 2 basis points to 2.54% and, for a 10-year fix, the average rate edged down 1 basis point to 2.98%.

The average rate for a two-year fix remained at 2.25% during the week.

Two-year fixes

At 95% LTV, the average fix lost 3 basis points to come to 3.26%.

The 85% LTV average rate mirrored this, moving up 3 basis points to 2.41%.

And at 65% LTV, another 3 basis point gain saw the rate rise to 2.16%.

Three-year fixes

There were some extreme rate drops here this week.

Starting from the highest tier: at 95% LTV, the average rate fell 6 basis points to 3.26%. And at 90% LTV, a 14 basis point fall occurred, giving a rate on Friday of 2.76%.

At 85% LTV, the average rate fell by 16 basis points to 2.30% and, at 80% LTV, the average rate lost 11 basis points, moving to 2.21%.

Meanwhile, at 65% LTV, the average rate gained 10 basis points, moving to 1.92%.

Five-year fixes

Again, there were rate drops at the higher-LTV brackets: at 95% LTV, this amounted to a 6 basis point move downwards to 3.55% and, at 90% LTV, a lose of 3 basis points, taking the price to 3.03%.

At 65% LTV, the average rate grew by 3 basis points, to 2.38%.

10-year fixes

There was some rare action within this fix this week, comprising three rate drops and two rate increases. These were as follows:

At 95% LTV, the rate tumbled by 16 basis points to 4.23% while the average rate at 75% LTV and 60% LTV fell 10 basis points apiece, to 2.68% and 2.37%, respectively.

At 90% LTV, a 2 basis point gain saw the average rate tick up to 3.97% and at 85% LTV, the average rate moved up 1 basis point to 3.53%.

Moneyfacts finance expert Eleanor Williams says: “Product re-pricing continues to be the focus for many providers this week, as we recorded fluctuations across many of the average fixed rates.

“A number of lenders balanced a mixture of both rate increases and decreases in their latest updates to their ranges, such as TSB, which made some of the most notable rate changes this week including reductions of as much as 1% across selected deals, coupled with increases of up to 0.15% on others.

“HSBC also applied rises of up to 0.10% on selected fixed rate deals, while other products were reduced by up to 0.20%, as did Yorkshire Building Society where both fixed and variable tracker rates were reduced or increased by up to 0.30%.

“Monmouthshire Building Society amended various products, including rate decreases of up to 0.60% on a handful of options, while also adjusting incentives and fees. Leeds Building Society reduced selected fixed rates by up to 0.30%, while Skipton Building Society tweaked a couple of its new build fixed rates with reductions of 0.45%.

“Other changes included Foundation Home Loans updating its ‘Green’ mortgage range and Digital Mortgages by Atom Bank refreshing many of its ‘Prime’ and ‘Near Prime’ products.”