Mortgage cutbacks by lenders continue to weigh on average rates: Moneyfacts – Mortgage Strategy

Financial experts Moneyfacts said continued interest rate cuts from mortgage lenders have resulted in interest rates falling for a week in a row.

The company said typical mortgage costs were 4.93% this week, down from 4.96% last week and 4.98% the week before.

The mortgage category with the biggest rate fall was three-year fixed rates up to 70% LTV, which fell 27 basis points this week to an average rate of 5.22%.

Other notable average declines include the two-year fixed maximum LTV of 70%, which fell 9 basis points to 4.82%.

However, setting a two-year LTV of 65% bucked the trend of rate cuts, with rates rising 8 basis points to average 5.01%.

Rachel Springall, finance expert at Moneyfacts, said: “The mortgage market has seen some healthy profits this week as a number of lenders cut fixed rates, including significant cuts from the largest high street banks. Building societies and some challenger banks have also cut rates, but the market has also seen a number of new deals launched for borrowers to consider.

“As interest rate cut sentiment continued for a week, average two-year and five-year fixed rates fell to 4.88% and 4.93%, respectively, on a weekly basis. Moneyfacts average mortgage rates fell to 4.93%.”

Lenders cutting fixed rates this week include Barclays Mortgage by up to 30 basis points, Santander by up to 29 basis points, HSBC by up to 15 basis points, Lloyds Bank by up to 14 basis points and Halifax by up to 14 basis points.