All average fixed mortgage rates dropped this week, says Moneyfacts.

The average two-year fixed rate fell 2 basis points, from 2.58% to 2.56% and the average three-year fixed rate dropped 5 basis points, from 2.73% to 2.68%.

In the meantime, the average five-year fixed rate shed 2 basis points, from 2.81% to 2.79% and the average 10-year fix decreased slightly, from 2.99% to 2.98%.

Two-year fixes

There were significant changes at the higher LTV bracket here this week.

At 95% LTV, the average rate fell 6 basis points to 3.80% and the average rate at 90% LTV dropped by a similar amount – 5 basis points, from 3.33% to 3.28%.

However, the biggest change occurred at 50% LTV, which saw its average rate lose 31 basis points, going from 1.99% to 1.68%.

Three-year fixes

In what can only be described as a tumultuous week at this fix, the average rate at 95% LTV lost 10 basis points, going from 3.96% to 3.86%, and, at 75% LTV, a drop of 45 basis points saw the average rate tumble from 2.96% to 2.51%.

And at 60% LTV, the average rate dropped by 9 basis points, moving from 1.92% to 1.83% while at 65% LTV, the average rate gained 9 basis points, going from 2.25% to 2.34%.

Five-year fixes

Here, at 95% LTV, the average rate lost 4 basis points to end the week at 4.01% while, at 90% LTV, a drop of 2 basis points saw the average rate fall to 3.58%.

At 50% LTV, meanwhile, the average rate fell from 2.32% to 2.24% – a difference of 8 basis points.

10-year fixes

A fall of 1 basis point at 60% LTV saw the average rate within this fix move to 2.50%.

Moneyfacts finance expert Eleanor Williams says: “A busy week in the fluid residential mortgage sector with changes to both rates and product criteria coming in thick and fast.

“Rate re-pricing was the focus for a number of providers such as Coventry Building Society, which included selected rate reductions of up to a notable 0.70% in its latest update, while Yorkshire Bank also made rate cuts to various deals across the 75%, 80% and 85% LTV tiers of up to 0.40%.

“Other prominent brands to make rate reductions included HSBC where selected fixed rates dropped by up to 0.20%, Santander by up to 0.26% and Nationwide, which cut some products by up to 0.16%.

“Further activity was seen in the top lending tier with numerous updates to 95% LTV deals from various providers including Virgin Money, which launched another product under the Mortgage Guarantee scheme and Newcastle Building Society, which added “joint borrower sole proprietor” products to this tier.”