The average five-year fixed rate was the biggest gainer this week – down 4 basis points to 5.37%, according to weekly data from Moneyfacts.
The cuts in average rates were not as steep as last week, when the two-year rate fell 9 basis points and the five-year rate fell 6 basis points.
But there were still plenty of lenders making significant price cuts, with some cutting rates by as much as 40 basis points.
And yesterday’s key rate cut by the Bank of England was positive news for brokers and borrowers alike.
Two-year fixed rates
Average two-year interest rates fell 3 basis points from 5.79% last Friday to 5.76% today, after falling 9 basis points the week before.
This means they are down 12 basis points over the past two weeks, compared to 5.88% on July 19.
Last week’s rate cuts were fairly evenly spread across the LTV levels, although the 75% and 60% LTV bands saw a slightly larger decline of 4 basis points.
Three-year fixed rates
The average three-year fixed interest rate moved only modestly, by 2 basis points to 5.52%.
Some LTV levels saw no change at all, while others fell a few basis points.
Five-year fixed rates
The average five-year fixed interest rate fell by 4 basis points from 5.41% to 5.37%.
This means they are down 10 basis points from 5.47% over the past two weeks.
Last week, the 70% LTV level saw the largest decline, with the average interest rate falling by 6 basis points to 5.76%.
However, average rates at the slightly higher 75% LTV level were much cheaper at 5.25%, compared to 5.28% a week ago.
Ten-year fixed rates
There was no movement in the average ten-year yield, which remained at 5.93% for the second week in a row.
Moneyfacts personal finance expert Rachel Springall said: “It’s been a big week for the mortgage market. Not only have some of the biggest banks made cuts to fixed interest rates, but the cut in the Bank of England’s base rate has led to interest rate falls on the tracker. mortgages and changes written to reverse the interest.”
Among the lenders making the biggest cuts in the past week were Landbay with cuts of up to 40 basis points, MPowered cutting rates by up to 37 basis points, Co-op by up to 36 basis points, Halifax by up to 33 basis points and Clydesdale by up to 33 basis points .
Many others, including Lloyds, Yorkshire Building Society, Bath and Kensington, have cut some of their deals by 20 basis points or more.