The average two- and three-year fixed rate fell 4 basis points last week and the 10-year rate fell 8 basis points, following a wave of price cuts by lenders.
Moneyfacts’ latest weekly interest rate monitoring shows that five-year interest rates have fallen slightly less, with the average interest rate now 3 basis points lower than last Friday.
This marks a steeper decline than the week before, when two- and five-year deals fell just one basis point.
Two-year fixed rates
After the latest round of price cuts, the average two-year interest rate is now 5.88%, up from 5.92% a week ago.
The largest decline occurred at the 60% LTV level, where the average interest rate fell by 6 basis points from 5.39% to 5.33%.
In the 85%, 70% and 65% LTV tiers, average rates fell by 5 basis points, while in the 80% tiers they fell by 4 basis points.
Three-year fixed rates
Average three-year interest rates fell by 4 basis points from 5.63% to 5.59%.
The 80% LTV level saw the largest decline, with the average interest rate falling 6 basis points from 5.84% to 5.78%
At 85%, 75% and 60% LTV, interest rates fell 5 basis points compared to last week, while at 95% LTV they fell 4 basis points.
Five-year fixed rates
Average five-year interest rates fell by 3 basis points from 5.5% to 5.47%.
The largest decline occurred to the LTV interest rate of 60%, which fell by 5 basis points from an average of 5.01% to 4.95%.
At 70%, the LTV interest rate fell by 5 basis points from 5.88 to 5.83%.
Rates with an LTV of 75% and 80% decreased by 4 basis points, while other LTV levels decreased only slightly from last week.
Ten-year fixed rates
Long-term transactions saw the largest decline last week: the average ten-year interest rate fell by 8 basis points from 6.01% to 5.93%.
Moneyfacts financial expert Rachel Springall says: “Some of the biggest banks in the country have cut fixed mortgage rates this week, along with some of the largest mutual banks.
“Given that there were just over twenty brands reducing selected rates, such activity led to a decrease in overall average rates week after week.
“The prominent brands that have cut certain fixed interest rates this week include NatWest by up to 23 basis points, Lloyds Bank by up to 22 basis points, Halifax by up to 17 basis points, Santander by up to 15 basis points and Virgin Money by up to 12 basis points.
“Building societies have also made some rate changes this week, including Yorkshire Building Society by up to 25 basis points, Progressive Building Society by up to 24 basis points, Cumberland Building Society by up to 60 basis points, Saffron Building Society by up to 60 basis points and Furness Building Society by up to 20 basis points.”
Other major cuts included MPowered Mortgages by up to 30 basis points, Clydesdale Bank by up to 28 basis points, Accord Mortgages by up to 20 basis points, Live More Capital reduced by up to 50 basis points and The Co-operative Bank by up to 32 basis points.