Two-, five- and 10-year fixes drop – weekly rate watch

A decreased from 2.58% to 2.57% has been noticed in the average 2-year rate, as well as the average five-year fix dropping from 2.76% to 2.75%, and as for the 10-year fix a drop from 2.85% to 2.83%.

The average rate remained throughout the week at 2.67% for a three-year fix.

The biggest change seen was at 70% LTV, which saw its average rate rise 6 basis points, climbing from 2.45% to 2.51%.

On the 90% LTV and 85% LTV, the average rate for each dropped by 2 basis points, landing at 3.52% and 3.08%, respectively.

Three-year fixes

Little change was found within this category this week. At 85% LTV the average rate dropped 1 basis point, to 2.94% as did the average rate at 75% LTV, ended the week at 2.17%.

Five-year fixes

We saw a 6 basis point movement at 70% LTV in this fix, with the average rate increasing from 2.63% to 2.69%.

In the 90% LTV and 85% LTV, we noticed a fall of 2 basis points apiece, finishing the week of at 3.65% and 3.20%, respectively.

10-year fixes

With the longer-term fix the only movement was at 60% LTV, where the average rate dropped 4 basis points, coming to 2.42%.

Moneyfacts finance expert Eleanor Williams says: “Availability continues to steadily improve across the residential mortgage sector as lenders adjust their ranges.

“A few noteworthy updates this week, including an update from TSB, which balanced rate increases of up to 0.60% with reductions of up to 0.35% on selected deals, while also launching new products, including some with no fee at 90% LTV.

“Virgin Money was amongst the brands who made rate reductions, cutting selected fixed rates by up to 0.31%, while Halifax cut selected house purchase products by up to 0.26% and Leeds Building Society also made various reductions of up to 0.36%.

“While the sector remains fluid, those considering a new mortgage may be wise to seek qualified advice and support in selecting the best option for their circumstances, and keep in mind the overall mortgage package on offer, to balance the initial rate with any associated costs or incentives available to them.”