The average mortgage rate at the 70% loan-to-value level saw the sharpest declines this week, according to an analysis by Moneyfacts.
While there wasn’t much movement in the overall averages for two-, three- and five-year fixed rates, borrowers with a 30% deposit or equity were the biggest winners from lenders’ latest round of rate repricing.
The average three-year fixed rate with an LTV of 70% fell by 5 basis points to 5.11% and the average five-year fixed rate fell by the same margin to 4.98%.
The average two-year fixed rate with an LTV of 70% fell by 2 basis points to 4.88%, according to weekly data from Moneyfacts.
Looking at the overall averages of all LTV levels, the three-year fixed rate fell by 2 basis points to 4.86%, while the two- and five-year fixed rates both fell by one basis point to 4.97% and 5.02% respectively.
Most other changes within individual LTV levels were downward moves of one basis point, with the exception of three-year fixes at 90% LTV and five-year fixes at 60% LTV, which both fell by 2 basis points.
Santander’s move to reduced rates by up to 36 basis points will only come into effect on Monday and will therefore be reflected in next week’s averages.
Rachel Springall, financial expert at Moneyfactscompare.co.uk, said: “There were a few prominent brands making fixed rate adjustments, with Barclays cutting by up to 10 basis points, as did HSBC by the same 10 basis points margin. TSB, on the other hand, rose by 10 basis points.
“Of the few building societies to implement a fixed rate increase this week, Nottingham Building Society cut by up to 18 basis points, West Brom Building Society by up to 24 basis points, and Yorkshire Building Society cut rates by up to 8 basis points, but also increased selected interest rates by 5 basis points.
“Progressive Building Society rose by up to 10 basis points and Leeds Building Society made small rate adjustments, with increases of up to 5 basis points. In addition, Loughborough Building Society launched a new deal for borrowers with a loan-to-value ratio of 95%.”
Among specialty and only intermediary lenders, Accord Mortgages cut by up to 16 basis points, April cut by up to 15 basis points, Gen H cut by up to 25 basis points and Precise cut by up to 15 basis points, but also increased select interest rates by 11 basis points.
Swap rates indicate that there is room for further cuts
Springall added: “Swap rates are hovering around their 30-day lows, which in turn could mean further rate cuts in the coming days.
“It seems unlikely that the Bank of England will cut its base rate in November, but this should not deter borrowers.
“Some buyers may feel a bit in the dark until after the November Budget, as the rumor mill spins about changes to property tax and a cap on donations.
“Limiting the gift allowance would be a huge blow to borrowers who have to turn to the ‘Bank of Mom and Dad’ to build up a large enough deposit to secure a mortgage in the coming months.”