Average fixed rate mortgages fell further this week with more sub 4% fixed deals emerging.
According to the latest Moneyfacts rate watch, the average two-year and three-year fix both fell 0.02% today, from a week earlier, now standing at 5.37% and 5.23% respectively.
Meanwhile, the average five year-fixed rate is now at 5.21%, down 0.01% from the week prior and 10-year fixes are down 0.04% to 5.67%.
Among the larger banks to reduce select fixed rates this week were Lloyds, who cut made cuts of up to 0.31%, Virgin Money with reductions of up to 0.68% and Barclays by up to 0.48%.
Santander cut fixed rates by up to 0.16% and TSB by up to 0.10%.
Building societies made rate reductions this week, including West Brom Building Society by up to 0.41%, Vernon Building Society by up to 0.26%, Bath Building Society by up to 0.25%, Darlington Building Society by up to 0.20%, Cambridge Building Society by up to 0.20%, Chorley Building Society by up to 0.20%, Skipton Building Society by up to 0.16%, Leek Building Society by up to 0.10%, and Coventry Building Society by up to 0.05%
A few more lenders moved to reduce rates such as Clydesdale Bank by up to 0.12%, The Mortgage Lender by up to 0.10%, Gen H by up to 0.14%, and Atom Bank by up to 0.15% on ‘prime’ fixed mortgages.
Moneyfacts finance expert Rachel Springall says there was “positive sentiment” in the mortgage market this week.
“Fixed rate mortgages have continue on a downward trend, and more brands have joined the small collection of lenders offering sub-4% fixed deals,” says Springall.
“The millions of borrowers due to come off cheap fixed mortgages must seek advice to navigate the latest deals available to them, particularly as the lowest rate deals can carry high fees. As well as higher mortgage rates now compared to 2020, we know that mortgage product fees have risen over the same period, which makes it essential for borrowers to check the overall cost of any mortgage, which includes any fees or cost-saving incentives, and not be swayed by a headline-grabbing low rate alone.”
