This week, building societies took the lead in changes to fixed interest rates, but overall, changes to fixed interest rates have slowed significantly in the run-up to Christmas.
As a result, the average two- and five-year interest rates fell slightly, by 0.01% and 0.02% respectively, to 5.46% and 5.23%.
As Moneyfacts spokesperson Caitlyn Eastell explains, prominent brands that have cut select fixed interest rates this week include TSB remortgage rates by up to 0.25%, HSBC by up to 0.10% and also up 0.05%, and Royal Bank of Scotland and NatWest have both reduced by up to 0.05%. up to 0.04%.
Building societies have also changed some rates this week, including Skipton Building Society by up to 0.10%, Leek Building Society by up to 0.20%, Nottingham Building Society by up to 0.20%, Furness Building Society by up to 0.30%, and Cumberland Building Society with a maximum of 0.20%.
A few more lenders increased interest rates, including Atom Bank, by a maximum of 0.15%.
Eastell commented: “A number of notable deals emerged this week, including a two-year fixed rate deal from Furness Building Society, priced at 5.49% and available at a 95% loan-to-value for customers who close. charges no product fees and includes an attractive incentive package with a free valuation and £250 cashback. This could be an attractive option for buyers with a limited deposit and looking to save on upfront costs.
She added: “With inflation rising for the second month in a row this week, the MPC has decided to keep interest rates at 4.75%. This may give lenders time to catch up and pass the previous reduction on to their fixed rate agreements as these are typically unaffected initially. However, it is expected that there will be a cut in the base rate next year once persistent inflation starts to subside, but it is still unknown when and how much that will be.