The average rate for a two-, three- and five-year fix dropped again this week, data from Moneyfacts reveals.
For a two-year fix, the average rate dropped 4 basis points to 2.29% and, for a three-year fix, the average rate fell 3 basis points, to 2.33%.
The average rate for a five-year fix slipped 2 basis points, to 2.57%, and for a 10-year fix, the rate was stayed the same all week, at 2.99%.
Two-year fixes
At 95% LTV, the average rate shed 3 basis points, moving to 3.38% and at 90% LTV, a 5 basis point drop saw the average rate end the week at 2.66%.
Meanwhile, at 70% LTV, the average rate fell 4 basis points, to 2.23%.
Three-year fixes
A 7 basis point drop saw the average rate for a 95% LTV mortgage come to 3.35% by Friday, but it was at 90% LTV where the most significant change took place – here, the average rate fell 10 basis points, to 2.93%.
And at 65% LTV, the average rate decreased by 8 basis points, to 1.82%.
Five-year fixes
It was a little quieter within this fix this week. At 95% LTV, a 3 basis point drop saw the average rate move to 3.71% while at the other end of the scale, at 50% LTV, the average rate fell 7 basis points, to 2.18%.
10-year fixes
There was no changes of any significance here this week.
Moneyfacts finance expert Eleanor Williams says: “This week saw the rate war rage on in the residential mortgage sector as many of the average fixed rates continue to fall and the majority of the product updates from providers containing at least some reductions to initial rates. This includes Platform, which has made cuts of up to 0.32% in its latest range change and now offer a record-low initial rate of 0.79%.
“Substantial rate slashes were seen from Leeds Building Society, which cut up to 0.75% from its interest only deals, while Coventry also made selected product reductions of up to 0.50% as well as other tweaks to its range, including applying an increase of 0.10% on one of its interest only deals and withdrawing a handful of offset products.
“Other notable updates included NatWest reducing selected fixed rate products by up to 0.69% and amending the cashback incentives on various deals. Similarly, Yorkshire Building Society dropped some of its fixed rates by up to 0.60%, while also revising some incentives on a number of products.”
