Average fixed rates dipped slightly this week as lenders continued to adjust pricing in the run-up to Christmas, according to Moneyfacts’ weekly rate watch data.
The two-year average ticked down by 2 basis points to 5.47% and the five-year average also dropped by 2 bps to 5.25%.
Within the 60% loan-to-value tier there were slightly bigger movements.
Three-year fixed rates at 60% LTV fell by 7 bps to 4.73% and five-year fixed rates at 60% LTV came down by 5 bps to 4.8%.
Two-year fixed rates at 60% LTV dropped by 4 bps to 4.98%
Moneyfacts spokesperson Caitlyn Eastell says: “Fixed rate reductions continue to take the spotlight this week, and some of the largest lenders made some of the most notable changes.
“The market has picked up marginally in comparison to last week but this may be attributed to providers making final changes before the Christmas period but there continues to be a mix of fixed rate increases, withdrawals, and product launches.
“The prominent brands to reduce selected fixed rates this week included TSB by up to 40 bps, Halifax by up to 17 bps, Virgin Money by up to 22 bps, Santander by up to 23 bps, Barclays by up to 10 bps and Lloyds by up to 7 bps.
“Building societies also made a few rates move this week.
“Those to reduce fixed rates included Skipton Building Society by up to 13 bps, Principality Building society by up to 12 bps, Bath Building Society by up to 35 bps, Newcastle Building Society by up to 20 bps, Yorkshire Building Society by up to 27 bps, and Leeds Building Society by up to 15 bps.
“Not to go unnoticed, a few more lenders moved to reduce rates which included Vida Homeloans by up to 15 bps, April Mortgages by up to 11 bps, and Accord Mortgages by up to 10 bps.
“There were some eye-catching deals to surface this week, including a two-year fixed rate deal from Yorkshire Building Society, priced at 4.66% and available at 75% LTV for remortgage customers, the deal charges a lower-than-average £495 product fee and includes free valuation, legal fees and £250 cashback.
“At the start of December, the average shelf-life rose to 21 days from 17 days the month prior and in more positive news there has also been an uptick in overall product availability which indicates lenders have taken a more subdued approach to re-pricing or pulling deals.
“Although there is not an expectation for base rate to drop next week, lenders may also need to consider hitting their end-of-year targets which could impact rate adjustments in the short-term.”