Average fixes were lower this week as lenders continued to cut rates to attract new customers, according to Moneyfacts data.
The average rate for two-year and five-year fixes fell by 8 basis points to 6.48% and 5.98%, respectively.
However, the average rate for a three-year fix edged a single basis point lower to 6.24%, and the average rate for a 10-year fix was unchanged at 5.75%.
Two-year fixes
The largest fall at this term came at the 60% LTV average rate, which was down 12 basis points to 6.18%.
The 95% LTV average rate slipped by 2 basis points to 6.74%, while the 90% LTV average rate fell by 8 basis points to 6.39%.
Three-year fixes
The biggest declines in this level saw the 85% LTV and the 80% LTV average rates both tumble by 15 basis points to 6.28% and 6.36%, respectively.
The 90% LTV average rate was down by 9 basis points to 6.25%, while the 95% LTV average rate edged a single basis point lower to 6.44%.
Five-year fixes
The largest falls in this term came with 85% LTV and the 80% LTV average rates, which both fell by 11 basis points to 6.02% and 6.09%, respectively.
The 95% LTV average rate was 3 basis points lower at 6.08%, while the 90% LTV average rate was down by 5 basis points to 5.79%.
10-year fixes
There was little change at this level, with the 95% LTV average rate showing the steepest fall, down by 2 basis points to 6.06%.
The 90% LTV average rate, the 85% LTV average rate, the 80% LTV average rate and the 60% LTV average rate all fell by a single basis point to 5.54%, 5.67%, 5.41% and 5.81%, respectively.
Moneyfacts finance expert Rachel Springall says: “Fixed-rate reductions took precedence across the mortgage changes this week, resulting in the overall average two- and five-year fixed mortgage rates falling for a consecutive week.
“There were a few prominent brands making selected fixed rate reductions this week, such as Barclays Mortgage reduced selected rates by up to 72 basis points, Santander by up to 50 basis points, NatWest by up to 25 basis points and HSBC by up to 16 basis points. Virgin Money reduced selected rates by up to 38 basis points and Clydesdale/Yorkshire Bank by up to 25 basis points.
“Activity among building societies was evident, those lenders to make cuts to selected fixed rates included Yorkshire Building Society by up to 23 basis points, Newcastle Building Society by up to 45 basis points, Leek Building Society by up to 15 basis points, Skipton Building Society by up to 19 basis points, Newcastle Building Society by up to 45 basis points, Melton Building Society by up to 75 basis points, West Brom Building Society by up to 20 basis points and Leeds Building Society by up to 25 basis points.
“There were more fixed-rate reductions taking place with Digital Mortgages by Atom Bank reducing selected rates by up to 20 basis points and Gen H reduced selected rates by up to 20 basis points.
“Some eye-catching deals surfaced this week, including a two-year fixed deal from Santander, priced at 5.43% and available at 60% loan-to-value, it carries a free valuation incentive.
“NatWest/RBS moved to increase their standard variable rates this week by 0.25%.
“As swap rates fall, it is expected fixed-rate mortgages will see more cuts over the coming weeks.
“This week our Moneyfacts average five-year fixed mortgage rate fell below 6% for the first time since July, which is a positive sign for borrowers looking for a new deal, but it is vital they seek independent advice to go through their options.”
