Rate reduction were back in the fixed mortgage market this week, following last week’s base rate cut.
In the week ending 14 February, there were marginal drops across all product averages and some sizeable cuts by certain large lenders.
According to Moneyfacts’ latest data, average two-year fixed deals were down 0.05% to 5.44%, three-year fixes down just 0.01% to 5.32%, five-year fixes down 0.04% to 5.26% and 10-year fixes fell just 0.01% to an average of 5.63%.
This week, sub-4% mortgages were back on the market, with Barclays and Santander announcing residential deals at 3.99%,
Other prominent brands to reduce selected fixed rates included Virgin Money by up to 0.07%, TSB by up to 0.15%, and NatWest by up to 0.36%. Many prominent lenders have also been adjusting their SVRs this week which included Halifax, NatWest, Lloyds Bank, Royal bank of Scotland and TSB, all by 0.25%.
Building societies that made rate cuts this week included Nationwide Building Society by up to 0.35%, Leeds Building Society by up to 0.12% for first-time buyers and up to 0.19% for house purchase customers, Coventry Building Society by up to 0.14%, Yorkshire Building society by up to 0.97%, Saffron Building Society by up to 0.20%, Cumberland Building Society by up to 0.17% and Skipton Building Society by up to 0.11%.
Pepper Money also cut rates by up to 0.20%, April Mortgages by up to 0.20%, Accord Mortgages by up to 0.10% and LendInvest Mortgages by up to 0.10%.
Moneyfacts spokesperson Caitlyn Eastell says: “A conjunction of falling swap rates and a cut to bank base rate last week has provided a much more hopeful outlook. It is positive news to see many lenders reducing fixed rates, as typically it is not guaranteed that any interest rate reductions will be passed on.
“Many borrowers would have been keeping an eager eye on falling mortgage rates which will now be rewarded with the return of sub 4% deals and those looking to refinance may be relieved. It is now as crucial as ever that borrowers do not unknowingly slip onto their SVR as although base rate reductions are being passed on, they still pay significantly more than a fixed deal.”
