The pace of mortgage rate cuts is slow but continuing, according to the latest interest rate monitoring data from Moneyfacts.
Week-on-week, the average two-year fixed rate fell from 4.84% to 4.82% and the average five-year fixed rate fell 1 basis point to 4.90%. Meanwhile, Moneyfacts’ average mortgage interest rate fell from 4.90% to 4.88%.
This week’s Moneyfacts mortgage data follows a similar trend to last week’s, with interest rate cuts fade slightly.
The biggest cuts were on three-year interest rates up to an LTV of 95%, which were cut by an average of 7 basis points to 5.29%.
The three-year fix to a 90% LTV also saw similar reductions, with the average loan cut by 5 basis points to 4.82%.
The two-year fixes at a 60% LTV increased by 1 basis point over the week to an average of 4.28%.
An increase of 1 basis point was also recorded for five-year fixed rates to an LTV of 60%, with the average interest rate for these mortgages now standing at 4.56%.
Moneyfacts product expert Caitlyn Eastell said: “Lenders have implemented fixed rate cuts in recent weeks, but during the Christmas slowdown rate movements have slowed significantly, with only four lenders adjusting their rates and only a handful more pulling back or expanding their range.
“The cuts this week included some significant reductions from Aldermore by up to 45 basis points and Vida Homeloans by up to 32 basis points. Barclays Mortgage was the only major lender to make changes as select fixed rates were cut by 20 basis points and a few ‘premier’ accounts increased by 10 basis points.
This week also saw Kent Reliance withdraw their entire mortgage range as the brand exited the market. The leading fixed rate is still held by Santander, but the interest rate has been reduced to 3.51% for two years.