Building societies are leading the fixed rate mortgage cut as lenders battled it out to woo borrowers.
Latest data from Moneyfacts rate watch showed that the majority of lenders lead by building societies have cut rates this week.
And these activities have led to the fall of two- and five-year fixed mortgage rates.
Rachel Springall, Finance Expert at Moneyfacts said: “The majority of lenders have cut fixed rate mortgages this week, with building societies dominating activity with cuts of up to 0.80%. These movements led to a fall in the overall two average two- and five-year fixed mortgage rates.
“There were a couple of prominent high street brands making fixed rate cuts this week, with reductions by Barclays Mortgage of up to 0.50% and Virgin Money by up to 0.54%. However, Santander went against the rate cut trend this week by increasing selected fixed rates by up to 0.20%.
“Building societies were notably active, making several fixed rate cuts. Those lenders to make cuts to selected fixed rates included Nationwide Building Society by up to 0.80%, Hanley Economic Building Society by up to 0.70%, Newbury Building Society by up to 0.60%, Nottingham Building Society by up to 0.54%, Leek Building Society by up to 0.45%, Newcastle Building Society by up to 0.40%, Mansfield Building Society by up to 0.40%, Scottish Building Society by up to 0.20% and Progressive Building Society by up to 0.15%.
“More cuts to fixed rates came from Digital Mortgage by Atom Bank by up to 0.25%, Vida Homeloans by up to 1.05%, Foundation Home Loans by up to 0.90% and Kensington by up to 0.30%. Gen H also made changes this week, but increased rates by up to 0.17%.
“A few eye-catching deals also surfaced this week, including a two-year fixed deal from Nationwide Building Society, priced at 4.53% and available at 80% loan-to-value for house purchase customers, it carries a free valuation and charges a £999 product fee.
“It’s positive to see rate cuts outweighing rises for borrowers, but as swap rates remains volatile, it will be interesting to see how lenders will react in the weeks to come. Borrowers would be wise to seek independent advice to go over the latest options available to them.”
