Two- and three-year fixes drop – weekly rate watch

Data from Moneyfacts shows that the average two-year fixed rate dropped 1 basis point to end the week at 2.56% and the average three-year fixed rate fell 3 basis points to finish at 2.64%, shows data from Moneyfacts.

Although at the same time, the average five-year fixed rate stayed steadfast at 2.75% and the average 10-year fixed rate gained 1 basis point, moving to 2.84%.

Two-year fixes

The most momentous changes in this category took place at 90% LTV and 70% LTV.

Within the former, the average rate dropped 2 basis points, moving from 3.52% to 3.50% and, at the former, the average rate lost the same amount of basis points, coming to 2.49%.

Three-year fixes

At 60% LTV, the average rate lost 8 basis points, going from 1.99% to 1.91%.

While, at 80% LTV, the average rate fell from 2.67% to 2.62%.

At 90% LTV the average rate climbed by 4 basis points, moving from 3.52% to 3.56%.

Five-year fixes

The 70% LTV average rate was the only product that had a significant move, where the average rate fell from 2.69% to 2.66%.

10-year fixes

The only change here was the 75% LTV. The average rate increased slightly, from 2.75% to 2.76%.

Moneyfacts finance expert Eleanor Williams says: “There has been continued re-pricing activity in the mortgage market this week, with providers such as Halifax and HSBC making reductions to selected fixed rates of up to 0.11% and 0.10% respectively, while Barclays increased some of its fixed rate products by up to 0.12%.

“NatWest and Santander both made various changes, which included rate changes and amendments to incentive packages on certain deals. Santander also introduced new remortgage deals at 90%  LTV this week, while Virgin Money opened up its fixed first-time buyer deals in this tier to second-time buyers and those remortgaging, improving choice for borrowers with lower levels of deposit or equity.

“As providers continue to react to an ever-evolving landscape and adjust their product ranges accordingly, speed and preparation may be key for borrowers looking to secure a new deal, and seeking the up to date knowledge and support of a qualified adviser may be wise.”