Average fixes continued to fall this week, as lenders battle for customers while the Bank of England base rate remains stable.  

The average rate for two-year fixes fell by 2 basis points to 6.22%, while the average rate for three-year fixes was down 10 basis points to 6.95%, according to Moneyfacts data.      

The average rate for five-year fixes fell by 6 basis points to 5.81%, as 10-year fixes ended the week unchanged at 5.77%.     

Two-year fixes  

The largest falls in this term came at the 60% LTV and 50% LTV average rates, which both tumbled by 16 basis points to 5.81% and 5.91%, respectively.  

The 95% LTV average rate was down 3 basis points to 6.51%, while the 85% LTV average rate was 6 basis points lower at 6.37%.  

Three-year fixes  

The biggest decline at this level saw the 65% LTV average rate plunge by 17 basis points to 5.93%, followed by the 70% LTV average rate, which fell 13 basis points to 6.04%.    

The 95% LTV average rate was down 4 basis points to 6.20%, as the 85% LTV average rate fell 12 basis points to 6.05%.  

Five-year fixes     

The largest falls in this term came at the 65% LTV average rate, which was down 16 basis points to 6.05%, followed by the 60% LTV average rate, which was 11 basis points lower at 5.39%.  

The 95% LTV average rate was down 4 basis points to 5.88%, while the 85% LTV average rate fell 5 basis points to 5.85%.  

10-year fixes      

All average rates at this level were unchanged.  

Moneyfacts finance expert Rachel Springall says: “This was another consecutive week of fixed-rate reductions taking precedence against rises as lenders moved to adjust their ranges, with some making sizeable cuts.

“These movements led to a fall in the overall two average two- and five-year fixed mortgage rates.  

“Some notable cuts were made by a few of the most prominent brands in the market, such as NatWest and Royal Bank of Scotland by up to 57 basis points, HSBC by up to 35 basis points, Lloyds Bank by up to 38 basis points, Halifax by up to 38 basis points and Virgin Money by up to 10 basis points.  

“A few building societies were also active this week, those lenders to make cuts to selected fixed rates included Saffron Building Society by up to 50 basis points, Nationwide by up to 38 basis points, Coventry Building Society by up to 36 basis points, Furness Building Society by up to 12 basis points and Leek Building Society by up to 10 basis points.  

“Not to go unnoticed, there were further selected cuts by Bluestone Mortgages by up to 80 basis points, Foundation Home Loans by up to 40 basis points, Gen H by up to 26 basis points and Bespoke by Bank of Ireland UK by up to 21 basis points.  

“There were only a couple of leaders making fixed rate increases this week, such as Skipton Building Society by up to 9 basis points and Saffron Building Society by up to 10 basis points.    

“A few eye-catching deals also surfaced this week, including a two-year fixed deal from Nationwide, priced at 4.99% and available at 60% loan-to-value for second-time buyers, it carries free valuation and charges a fee of £999. It also offers a green reward for eligible properties.  

“Only one lender increased its standard variable rate this week, with Scottish Building increasing the revert rate by 25 basis points.  

“A positive sentiment continues to sweep through the mortgage market and there are expectations that fixed rates will continue to be cut in the weeks to come. Borrowers comparing the latest deals to surface would be wise to seek independent advice to go review their options.”  

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