All major mortgage fixed rates fell significantly this week, Moneyfacts says in a new report.
The average rate for a two-year fix fell 12 basis points, to 5.63%, while the average rate for a three-year fix dipped 6 basis points, to 5.71%.
Meanwhile, the average rate for a five-year fix fell 13 basis points, ending the week at 5.45%, and an 18 basis point drop saw the average rate for a 10-year fix come to 5.64%.
Two-year fixes
Rates fell at all LTV segments here this week. Leading the pack was the average price at 80% LTV, which fell 17 basis points to 5.75%.
And at both 85% LTV and 65% LTV, a 14 basis point cut saw their average rates come to 5.69% and 5.88%, respectively.
Three-year fixes
At 85% LTV, the average rate fell 6 basis points, to 5.72%.
The biggest change took place at 65% LTV, however, where the average rate dropped 53 basis points, moving to 6.04%.
Five-year fixes
Here, the 80% LTV fix lost 17 basis points, which took its rate to 5.54% and, at 90% LTV, the average rate was reduced by 13 basis points, ending the week at 5.41%.
10-year fixes
The most significant move here this week occurred at 60% LTV, which saw 30 basis points removed from its average rate, moving it to 5.71%.
And at 75% LTV, the average rate fell by a more modest 11 basis points, to 5.20%.
Moneyfacts finance expert Eleanor Williams says: “The mortgage sector saw an assortment of updates this week, predominantly continuing the recent theme of rate improvements, but also various amendments to ranges and criteria.
“Some notable rate cuts came from TSB, which reduced selected five-year fixed products by as much as 1.30%, and also included passing on the recent base rate increase of 0.50% to its variable tracker deals and revert rate in its update.
“Aldermore slashed rates, with its five-year fixed deals dropping by up to 0.84% and its two-year fixed options reducing by up to 0.70%. Newcastle Building Society also lowered a selection if its fixed products by as much as 0.80%, while also cutting 0.20% from discounted variable rates, and withdrawing a number of deals. The NatWest group was also active this week, making fixed rate reductions of up to 0.74% and to selected variable trackers of up to 0.20%.
“Coventry Building Society made various tweaks to its range, including rate cuts of up to 0.70% across various fixed products including interest-only and offset options, and also introducing new variable tracker deals to its range.
“Post Office Money ® lowered a couple of its fixed rate deals by a maximum of 0.65%, as well as launching two new fixed products to its range. Saffron Building Society made reductions of up to 0.50% to a selection of its fixed rates, as did Kensington, as well as withdrawing some of its deals from sale.
“Elsewhere Hodge made reductions of up to 0.25% across it’s ‘50+’ and retirement interest-only (RIO) deals and up to 0.30% on its ‘Professional’ fixed products, while LiveMore Capital dropped the minimum age on its RIO range down to 50 from 55, as well as adding new fee-free options to its offerings.”
