Mortgage lenders made a “medley” of rate cuts this week, according to the latest Moneyfacts rate watch.
Week-on-week, the average two-year fix rose by 0.01% to 5.52%, while the average five-year fix increased by 0.02% to 5.32%.
Meanwhile, three-year fixes fell slightly by 0.01% to an average of 5.33% and 10-year fixes were static at 5.65%.
While overall rates increased marginally, cuts were also prevalent across many mortgage products.
Prominent brands that reduced select fixed rates this week included NatWest and RBS by up to 0.10%, Virgin Money by up to 0.07% and TSB, who upped rates by up to 0.10% but also launched a new two-year fixed deal at 95% loan-to-value.
The Co-operative Bank reduced rates by up to 0.43%, Precise by up to 0.60%, Atom Bank by up to 0.15% and LendInvest by up to 0.10%.
Santander reduced by up to 0.28% but also increased by up to 0.02% and pulled its ‘green’ fixed mortgages.
Building societies reducing fixed rates this week included Nottingham Building Society by up to 0.29%, Leeds Building Society by up to 0.21%, Vernon Building Society by up to 0.20%.
Yorkshire Building Society and Darlington Building Society made cutes of up to 0.05%, though the Yorkshire upped other deals by up to 0.10%. Newcastle Building Society cut by up to 0.25% but also increased by up to 0.20%, Family Building Society cut by up to 0.05% but also increased by up to 0.10% and launched a new five-year fixed at 90% loan-to-value.
Moneyfacts finance expert Rachel Springall says: “Lenders showed mixed feelings on rate re-pricing this week, which isn’t too unsurprising considering the turmoil of swap rates over recent weeks.
“Thankfully, these appear to be at falling and are around the lowest they have been over the past 30 days. We may then see more lenders re-price their deals lower in the next couple of weeks.
“The next Bank of England base rate decision is on the horizon, and borrowers who are due to come off a cheap fixed deal will likely want to see a cut. Economists from a recent Reuters poll seem in agreement of a cut, at 90%. The February meeting is also important as it will bring the next quarterly Monetary Policy Report, which should give us some useful inflation projections. In the meantime, there have been some new higher loan-to-value deals launched onto the market this week, so it’s wise to seek advice to explore the latest deals available.”