According to financial experts Moneyfacts, continued interest rate cuts by mortgage providers have pushed interest rates down for another week.
The company said the average mortgage cost 4.93% this week, down 4.96% last week and 4.98% the week before.
The mortgage category that saw the biggest drop in interest rates was three-year fixed rates up to 70% LTV, which saw a decline of 27 basis points over the week, to an average of 5.22%.
Other notable average declines were seen for two-year fixes up to 70% LTV, seeing a 9 basis point decline to 4.82%.
However, the two-year fixation on an LTV of 65% broke the trend of rate cuts, with rates rising by 8 basis points to an average of 5.01%.
Rachel Springall, finance expert at Moneyfacts, said: “The mortgage market saw some significant margin cuts on fixed rates this week by a variety of lenders, including notable cuts at the biggest high street banks. Building societies passed on lower interest rates, as did a handful of challenger banks, but the market also saw the impact of new new deals for borrowers to consider.
“While sentiment towards austerity continued for a week, average two- and five-year fixed rates fell week-on-week to 4.88% and 4.93% respectively. Moneyfacts’ average mortgage rate fell to 4.93%.”
Lenders cutting fixed rates this week included Barclays Mortgage by up to 30 basis points, Santander by up to 29 basis points, HSBC by up to 15 basis points, Lloyds Bank by up to 14 basis points and Halifax by up to 14 basis points.