The rate reductions were back on the mortgage market this week, albeit marginal, because the basic rate was left unchanged at 4.25%.
According to MoneyFacts, the average solutions fell by 0.02% to 5.11%, three and five-year fixes fell by 0.01% to 5.03% and 5.64% respectively, but the average fixes of five years were unchanged at 5.1%.
The biggest change came with five -year solutions for max 100% LTV, which in the rate increased by 0.04% to 5.7%.
The flat movement came so little surprise if the MPC committee of the Bank of England kept the basic rate at 4.25% on Thursday.
However, prominent brands that decreased selected fixed rates include Santander with cuts up to 0.22%, virgin money up to 0.10%, Lloyds bank with a maximum of 0.10%and Halifax with a maximum of 0.10%.
Rachel Springall, finance expert at MoneyFacts, says: “The decision to keep the Bank of England basic rate will come as disappointing news for borrowers this week, but it is worthwhile to point out that lenders will not only follow the path of the basic rate in adjusting the mortgage interest.
“Those who weigh the future tariff expectations traditionally follow the market for Swap rate, and while it comes out, Swaps float between their 30-day highlights and 30 days of lows. Although this week is a bit modest for mortgage activity, we have seen a handful of dressed rates instead of raising. Hopefully this sentiment will continue in the coming weeks.
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