Analysis by Moneyfacts shows average mortgage rates fell the most this week with a loan-to-value ratio of 70 per cent.
While the overall average for two-, three- and five-year fixed rates didn’t move much, borrowers with 30 per cent deposits or equity were the biggest winners from the latest round of repricing by lenders.
The average three-year fixed rate (with an LTV of 70%) fell 5 basis points to 5.11%, and the average five-year fixed rate also fell to 4.98%.
According to weekly data from Moneyfacts, the average two-year fixed rate was 70% LTV, down slightly by 2 basis points to 4.88%.
Looking at the overall average across all LTV tiers, the three-year fixed rate fell 2 basis points to 4.86%, while the two-year and five-year fixed rates both fell one basis point to 4.97% and 5.02% respectively.
Most other changes within each LTV tier are one basis point shifts downward, except for the three-year fixed value at 90% LTV and the five-year fixed value at 60% LTV, which both decreased by 2 basis points.
Santander’s move to cut interest rates by up to 36 basis points will not take effect until Monday and will therefore be reflected in next week’s average interest rates.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “There have been some big names making fixed rate changes, with Barclays cutting their rates by up to 10 basis points and HSBC also cutting their rates by 10 basis points. TSB, on the other hand, has seen a 10 basis point increase.”
“Among the handful of building societies to adopt fixed rate changes this week, Nottingham Building Society cut rates by up to 18 basis points, West Brom Building Society cut rates by up to 24 basis points and Yorkshire Building Society cut rates by up to 8 basis points but also increased selected rates by 5 basis points.
“Progressive Building Society has seen an increase of up to 10 basis points, and Leeds Building Society has made a small rate adjustment, with an increase of up to 5 basis points. In addition, Loughborough Building Society has launched a new deal for borrowers with a loan-to-value ratio of 95 per cent.”
Among specialist and intermediary lenders, Accord Mortgages cut rates by up to 16 basis points, April cut rates by up to 15 basis points, Gen H cut rates by up to 25 basis points and Precise cut rates by up to 15 basis points, but also raised selected rates by 11 basis points.
Swap rates signal scope for further rate cuts
Springall added: “Swap rates have been hovering near 30-day lows, which in turn could mean further rate cuts in the coming days.
“It seems unlikely that the Bank of England will cut the base rate in November, but this should not deter borrowers.
“Ahead of November’s Budget, some buyers may be feeling a bit lost as rumors swirl about changes to property taxes and gift caps.
“Limiting the gift allowance will be a huge blow to borrowers who need to make a large enough deposit with the ‘bank of mum and dad’ to secure a mortgage in the coming months.”
