Average rates on two- and five-year fixes have been falling this new year as lenders compete on price, the latest data from Moneyfacts shows.
As of today, 5 January 2024, the average two-year fix across all LTVs is 5.83%, down from 5.94% a week earlier; the average five-year fix is now 5.43%, down from 5.56% last week, while the average 10-year fix is 5.82%, down from 5.92%.
Some notable rate reductions were made by the larger banks, including cuts of up to 1% by HSBC, up to 0.83% by Halifax and Lloyds Bank for remortgage only, and up to 55% by NatWest.
There were also significant rate reductions from the building societies; Newcastle BS made fixed rate cuts of up to 0.75%, West Brom by up to 0.74%, Scottish Building Society by up to 0.60% and Leeds by up to 0.49%.
Furthermore cuts of up to 0.67% were made by Gen H, Clydesdale Bank by up to 0.47%, Yorkshire Bank by up to 0.26%, MPowered Mortgages by up to 0.25%, LendInvest by up to 0.55% and Bluestone Mortgages by up to 0.28%.
Moneyfacts spokesperson Rachel Springall says: “A few eye-catching deals also surfaced this week, including a three-year fixed deal from Gen H, priced at 4.52% and available at 60% loan-to-value for house purchase customers, it carries a free valuation and does not charge a product fee.
“The fall in swap rates has been cited by a few lenders this week as drive to drop mortgage rates, a positive move for those looking for a new deal. Borrowers comparing the latest deals to surface would be wise to seek independent advice to go review their options and not choose a deal based on the initial rate alone.”
