The latest RateWatch data from Moneyfacts shows the pace of mortgage rate cuts is continuing, albeit slowly.
Compared with last week, the average two-year fixed rate fell to 4.82% from 4.84%, and the average five-year fixed rate fell 1 basis point to 4.90%. Meanwhile, the Moneyfacts average mortgage rate fell to 4.88% from 4.90%.
This week’s Moneyfacts mortgage data is similar to last week, with a slightly weaker rate cut.
The largest cut was to fix the three-year LTV at 95%, with an average cut of 7 basis points to 5.29%.
Similar cuts were seen over the three-year period, which has an LTV of 90%, with the average loan down 5 basis points to 4.82%.
This week, rates on the two-year fixed rate of 60% increased 1 basis point to average 4.28%.
Five-year fixed rates have also increased by 1 basis point to 60% LTV, with the average interest rate on these mortgages now sitting at 4.56%.
Caitlyn Eastell, product specialist at Moneyfacts, said: “Lenders have been gradually reducing fixed rates over the past few weeks, but rate movements slowed significantly in the run-up to Christmas, with only four lenders modifying rates and only a handful exiting or increasing their rate ranges.
“This week’s rate cuts include significant cuts of up to 45 basis points at Aldermore and up to 32 basis points at Vida Homeloans. Barclays Mortgage was the only major lender to make changes, with some fixed rates reduced by 20 basis points and rates on some ‘premium’ accounts increased by 10 basis points.
This week, Kent Reliance also withdrew its entire mortgage range as the brand exits the market. The leading fixed rate is still held by Santander, but it has fallen to 3.51% for the second consecutive year.
