The rates decrease by 0.02% over two-, three- and five-year fixed interest rates

According to Moneyfacts, two-year mortgages for all LTVs fell by 0.02% to an average of 5.47% in the week ending September 20, 2024.

The average three- and five-year fixes for all LTVs also decreased by 0.02% to an average of 5.28% and 5.13%, respectively.

However, the average 10-year rate for all LTVs rose 0.04% this week to 5.66%.

Prominent brands that have reduced selected fixed rates this week include Virgin Money by up to 0.16%, Halifax by up to 0.09%, Santander by up to 0.29% and first direct by up to 0.35%.

Building societies implementing rate increases this week included Principality Building Society by up to 0.25%, Nottingham Building Society by up to 0.25%, Darlington by up to 0.20%, Cambridge by up to 0.50%, Saffron by up to 0 .40%, Leeds Building Society by up to 0.10%, Furness by up to 0.36%, teachers by up to 0.36% and Skipton Building by up to 0.19%.

Foundation Home Loans cut rates by up to 0.30% on its ‘special’ fixed mortgages and Hodge cut prices by up to 0.20% on its ‘hodge resi’ fixed range.

Moneyfacts finance expert Rachel Springall says: “Some notable deals came to light this week, including a two-year fixed rate deal from Leeds Building Society, priced at 5.63% and available at a 95% loan-to-value for the purchasing a house. customers, it includes a free valuation and a £500 cashback incentive, and there will be no product charges. This can be an attractive choice for people with a limited down payment and hoping to minimize the initial cost of their mortgage.

“The market recorded a number of substantial cuts in fixed rates this week, leading to a decline in the overall average two- and five-year fixed rates week on week. The significant cuts create positive sentiment for the market, but there will be borrowers who will be somewhat disappointed that the Bank of England’s base rate remains unchanged.

“However, interest rates are expected to be cut twice before the end of the year, or at least once by a significant margin. Borrowers shouldn’t wait for this to happen as they can find some attractive deals that have improved in recent weeks thanks to a favorable swap rate market. Seeking advice is wise to navigate the maze of mortgages and find the most suitable deal based on the total actual cost.”