Fixed mortgage rates have fallen once again this week, with new sub-4% deals entering the market, according to Moneyfacts. However, despite these reductions, the average rates on two- and five-year fixed mortgages remained unchanged compared to the previous week. In this article I will run through the new mortgage rates drop and also the average mortgage rates that have not changed.
Fixed Mortgage Rates Trends
The overall average rate for a two-year fixed mortgage held steady at 5.39% this week, following a 0.05% drop the week before. Similarly, five-year fixed rates remained at 5.22% after experiencing a 0.04% decrease last week. Three-year fixes saw a marginal decline, dipping 0.01% from last Friday to stand at an average of 5.26%.
Major Lenders Cutting Mortgage Rates
Several high street banks have reduced their fixed-rate mortgage products. HSBC led the way with rate cuts of up to 0.20%, followed by TSB with reductions of up to 0.15% and Virgin Money lowering rates by up to 0.10%.
Building societies were also active in making rate adjustments. Nationwide cut rates by up to 0.25%, joining a select group of lenders offering sub-4% mortgage deals. West Brom and Skipton Building Societies both reduced rates by up to 0.26%, while Hanley Economic Building Society lowered some rates by up to 0.12%. Loughborough and Principality Building Societies made the most significant cuts, slashing rates by up to 0.60%. Tipton & Coseley Building Society also reduced rates by up to 0.25%.
Mixed Movements Across the Market
Despite the overall trend of rate reductions, Saffron Building Society bucked the trend by increasing some owner-occupier mortgage rates by up to 0.10%. Meanwhile, The Co-operative Bank for Intermediaries raised its fixed rates by up to 0.36%.
Other lenders that lowered rates included:
- Gatehouse Bank – cuts of up to 0.25%
- Kensington – reductions of up to 0.50%
- Bluestone Mortgages – rates down by up to 0.15%
- Gen H – mixed changes, with cuts of up to 0.05% but also increases of up to 0.15%
- Additionally, Kent Reliance introduced new limited-edition fixed-rate mortgage deals.
What This Means for Borrowers
The introduction of new sub-4% mortgage deals is a positive development for homebuyers and remortgagers seeking competitive fixed rates. However, with swap rates still fluctuating, the direction of future mortgage pricing remains uncertain.
Borrowers looking to secure a fixed-rate mortgage should keep a close eye on market trends and act swiftly when favourable deals become available. They should also always speak with a qualified whole of market mortgage advisor to make sure that they are getting the most beneficial deal for their own unique circumstances. Call or message our team today to see how we can help you to secure your new mortgage.
