Rates on fixed term mortgage products fell again this week with new sub 4% deals introduced to the market, according to Moneyfacts.
However, despite the cuts, average rates on two and five-year fixes remained unchanged week-on-week.
The overall average rate for two-year fixes was 5.39% this week, consistent with last week, having dropped 0.05% from a week earlier.
Five-year fixes were also unchanged, staying at 5.22% following a drop of 0.04% a week prior.
Three-year fixes dipped slightly this week, down 0.01% from last Friday to 5.26% on average today.
Among the high street lenders to reduce select fixed rate products were HSBC, who cut prices by up to 0.20%, TSB with drops of up to 0.15% and Virgin Money, down up to 0.10%.
Building societies also made a few rate moves this week. with Nationwide dropping rates by up to 0.25%, West Brom Building Society by up to 0.26%. Skipton Building Society by up to 0.26%, Hanley Economic Building Society by up to 0.12%, Loughborough Building Society by up to 0.60%, Tipton & Coseley Building Society by up to 0.25% and Principality Building Society by up to 0.60%.
In contrast, Saffron Building Society increased some of its owner occupier deals by up to 0.10%
Further lenders that moved to reduce rates were Gatehouse Bank by up to 0.25%, Kensington by up to 0.50%, Bluestone Mortgages by up to 0.15% and Gen H by up to 0.05%, though they also made increases of up to 0.15% while The Co-operative Bank for Intermediaries increased fixed rates by up to 0.36%.
Finally, Kent Reliance launched some new limited edition fixed rate deals.
Moneyfacts finance expert Rachel Springall says: “Borrowers may be pleased to see fixed mortgage rate cuts are still very much dominating the rate moves this week.
“Nationwide made cuts to join the handful of lenders offering a sub 4% fixed mortgage, which is encouraging for those looking to refinance this year and are worried about the direction of interest rates.
“The two- and five year swap rates have calmed somewhat this week, but are hovering very closely to their 30-day rolling highs, so it will be interesting to see their direction in the coming weeks. Lenders closely follow swap rates to set their fixed mortgage rates, so if they fall, borrowers will likely see more appetite for rate cuts.”
