The average mortgage interest rate is falling again, says Moneyfacts

The average two-year fix is ​​now 5.62%, down 3 basis points from 5.65% last week. The typical five-year interest rate is now 2 basis points lower, at 5.59%.

Adam French, head of consumer finance at Moneyfacts, said: “Unlike recent weeks, some of the biggest cuts have benefited lower risk borrowers.

“The average two-year fixed rate with a loan-to-value ratio of 60% fell by 8 basis points from 5.15% to 5.07%, while the average five-year equivalent fell by 4 basis points from 5.28% to 5.24%. Lenders such as Accord and NatWest have also revamped products and adjusted loan limits to attract borrowers with more equity.

“While this is promising news for customers refinancing their mortgages, those who secured historically cheap five-year fixed deals in 2021 are still in for a shock. Based on a £250,000 mortgage over 25 years, a typical borrower securing a two-year fixed rate with a 60% LTV would now pay around £1,472 per month, around £12 less per month (£144 less per year) than a week ago.”

Notable fixed rates and price changes

• AIB (NI) – Fixed rates reduced by up to 16 basis points, with a small number rising by 2 basis points; end dates extended.
• Accord Mortgages – Selected fixed interest rates reduced by up to 46 basis points or increased by up to 10 basis points; tracker rates reduced by up to 21bps.
• Atom Bank – Fixed Near Prime rates reduced by 10 basis points; end dates extended.
• Buckinghamshire Building Society – Fixed RIO and pension rates reduced by 6 basis points.
• Coventry Building Society – Selected fixed rates reduced by up to 20 basis points.
• Gatehouse Bank – Select fixed interest rates reduced by 10 basis points.
• Generation H – Selected five-year fixed interest rates increased by 15 basis points.
• HSBC – Selected fixed rates reduced by up to 11 basis points; tracker rates reduced by up to 8bps.
• Halifax – Select fixed rates reduced by up to 10 basis points.
• Kensington – Selected flat rates reduced marginally; the revert-to and tracker rates have been increased by 15 basis points.
• Leeds Building Society – Selected fixed rates reduced by up to 5 basis points; end dates extended.
• Leek Building Society – Selected fixed rates increased by up to 10 basis points; end dates extended.
• Lloyds Bank – Mixed changes, reducing selected fixed interest rates by up to 10 basis points or increasing them by up to 5 basis points.
• Marsden Building Society – Selected fixed and reduced variable rates saw mixed changes; various end dates extended.
• NatWest – Selected fixed rates reduced by up to 11 basis points; maximum loan size changed.
• NatWest Intermediary Solutions – Selected fixed rates reduced by up to 10 basis points.
• Accurate Mortgages – Fixed rate reduced by up to 35 basis points.
• Principality Building Society – Selected fixed rates reduced by up to 10 basis points.
• Progressive Building Society – Fixed rates reduced by up to 40 basis points; discounted variable interest rates showed mixed movements.
• Royal Bank of Scotland – Selected fixed interest rates reduced by up to 10 basis points; maximum loan size changed.
• TSB – Selected fixed rates reduced by up to 25bps.
• Yorkshire Building Society – Fixed rates reduced by up to 15 basis points; tracker rates reduced by 9bps.
• Virgin Money – End dates extended across range.

Notable product launches, withdrawals and range changes

• Accord Mortgages – Select fixed interest rates have been withdrawn. New fixed and tracker products for remortgage launched.
• Buckinghamshire Building Society – Selected discounted variable and fixed rates have been withdrawn.
• Cambridge Building Society – New core, interest only and First Step fixed rates launched, including a 98% LTV product.
• Gen H – £499 flat rate products will be withdrawn and not replaced.
• Kensington – Selected Select fixed rate withdrawn and range restructured. New Select Special five-year fixed interest rate launched.
• Leeds Building Society – Select FTB, Reach and Income Plus products have been withdrawn.
• Lloyds Bank – Club Lloyds fixed rate remortgage and tracker products withdrawn.
• Marsden Building Society – New discounted variable rate launched.
• NatWest – High value fixed rate withdrawn.
• Progressive Building Society – New three-year fixed interest rates launched; renovation products extended from two to three years.
• Royal Bank of Scotland – High value fixed rate remortgage withdrawn.
• Vernon Building Society – Discount variable ranges withdrawn and replaced