Average fixes edged higher this week, as major lenders cut mortgage rates as they competed for summer business.  

The average rate for a two-year fix fell by 4 basis points to 5.93%, while the average rate for a three-year fix was 9 basis points lower at 5.66%, according to Moneyfacts data.

The average five-year fix was down 4 basis points to 5.51%, while the average 10-year fix was unchanged at 6.01%.  

Two-year fixes    

The largest movements in this term saw the 65% LTV average rate plummet by 23 basis points to 5.63%, followed by the 50% LTV average rate, which fell 8 basis points to 5.82%.     

The 95% LTV average rate edged a single basis point lower to 6.25%, while the 85% LTV average rate fell 3 basis points to 6.09%.  

Three-year fixes    

The biggest uplift at this level saw the 60% LTV average rate tumble 11 basis points to 5.16%, while the 75% LTV and the 65% LTV average rates were both down 9 basis points to 5.42% and 5.20%, respectively.  

The 95% LTV average rate fell 6 basis points to 6.16%, while the 85% LTV average rate was a single basis point lower at 5.89%.  

Five-year fixes  

The largest rises in this term came at the 65% LTV average rate, which tumbled 27 basis points to 5.29%, followed by the 75% LTV average rate, which fell 5 basis points to 5.36%.  

The 95% LTV average rate was unchanged at 5.78%, while the 85% LTV average rate was down by 4 basis points to 5.62%.  

10-year fixes  

All rates across this term were unchanged.  

Moneyfacts Finance Expert Rachel Springall says: “Mortgage rate reductions took precedence this week, some of which from prominent high street brands.

“These moves resulted in a fall to both the average two- and five-year fixed rates by 4 basis points week-on-week.  

“The prominent brands to reduce selected fixed rates this week included HSBC by up to 14 basis points, Barclays Mortgage by up to 3 basis points, Santander by up to 16 basis points, Lloyds Bank by up to 18 basis points, but also made increases of up to 13 basis points, Halifax by up to 19 basis points, NatWest and RBS by up to 23 basis points and Virgin Money by up to 10 basis points.   

“Building societies also made a few rate moves this week, those to reduce fixed rates included Cumberland Building Society by up to 10 basis points, but also made increases of up to 10 basis points, Yorkshire Building Society by up to 20 basis points, West Brom Building Society reduced by up to 20 basis points, Family Building Society reduced or increased by up to 15 basis points, Principality Building Society reduced by up to 10 basis points, but also made increases of up to 10 basis points and Leeds Building Society by up to 13 basis points.  

“Not to go unnoticed, a few more lenders moved to reduce rates, which included Kensington by up to 55 basis points, Accord Mortgages by up to 37 basis points, Yorkshire Bank by 20 basis points, Clydesdale Bank by up to 38 basis points and Bluestone Mortgages by up to 45 basis points.

“Lastly, Aldermore decided to increase selected fixed rates by up to 30 basis points.  

“Some eye-catching deals also surfaced this week, including a two-year fixed rate deal from Leeds Building Society, priced at 4.99% and available at 80% loan-to-value for house purchase customers, it carries a free valuation incentive, and charges a £999 product fee, so this could be an attractive choice for borrowers looking to save on the overall true cost of their mortgage.  

“Some of the biggest high street brands moved to cut fixed mortgage rates this week, leading to falls to the overall average rates.

“The general election may have taken precedence across the media, but what has not gone unnoticed is fixed mortgage rate cuts by some of the biggest lenders in the country, no doubt a relief for borrowers.   

“Due to moving swap rates, there are expectations that fixed mortgage rates will fall over the next couple of weeks, but it will be interesting to see by what margin.

“Borrowers may need to act quickly to secure a new deal, but they would be wise to seek out independent advice in the first instance to ensure it’s the right choice for them.”  

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