Average fixes fell this week as lenders continue to take advantage of the lull in the Bank of England’s rate-raising cycle.

The average rate for two-year fixes fell by 5 basis points to 6.37%, while the average rate for three-year fixes was 6 basis points lower at 6.15%, according to Moneyfacts data.

The average rate for five-year and 10-year fixes both fell by 4 basis points to 5.92% and 5.76%, respectively

Two-year fixes

The largest fall in this term came at the 65% LTV average rate, which was down 7 basis points to 6.47%.

The 90% LTV average rate fell by 4 basis points to 6.33%, while the 85% LTV average rate was 5 basis points lower at 6.48%.

Three-year fixes

The biggest declines at this level saw the 65% LTV average rate fall by 9 basis points to 6.20%, followed by the 95% LTV average rate and the 90% LTV average rate, which both fell by 8 basis points to 6.37%and 6.17%, respectively.

The 85% LTV average rate was 4 basis points lower at 6.20%.

Five-year fixes

The largest fall in this term came at the 65% LTV average rate, which was down by 8 basis points at 6.22%.

The 90% LTV average rate fell by 4 basis points to 5.97%, while the 85% LTV average rate fell by 5 basis points to 5.94%.

10-year fixes

The biggest declines at this level saw the 70% LTV average rate fall by 7 basis points to 6.68%, followed by the 60% LTV average rate, which was down by 6 basis points to 5.84%.

The 90% LTV average rate was unchanged at 5.48%, while the 85% LTV average rate fell by 2 basis points to 5.69%.

Moneyfacts finance expert Rachel Springall says: “For another consecutive week, fixed-rate reductions dominated the mortgage market, with some providers making sizeable cuts.

“The volume of cuts across the mortgage market resulted in another week-on-week drop to the overall average two- and five-year fixed mortgage rates.

“Building societies were particularly active this week, those lenders to make cuts to selected fixed rates included Bath Building Society by up to 85 basis points, Saffron Building Society by up to 70 basis points, Suffolk Building Society by up to 50 basis points, West Brom Building Society by up to 46 basis points, Nationwide Building Society by up to 45 basis points.

“The Cumberland Building Society reduced selected rates by up to 36 basis points, Newbury Building Society by up to 30 basis points, Tipton and Coseley Building Society by up to 35 basis points, Teachers Building Society by up to 25 basis points, Principality Building Society by up to 22 basis points, Nottingham Building Society by up to 21 basis points, Coventry Building Society by up to 16 basis points and Leek Building Society by up to 10 basis points.

“There were a couple of prominent brands making selected fixed rate reductions this week too, such as TSB by up to 20 basis points and first direct by up to 17 basis points.

“Not to be overlooked, more fixed rate reductions took place with The Co-operative Bank and its intermediary arm, by up to 50 basis points, Clydesdale Bank by up to 0.27%, Yorkshire Bank by up to 10 basis points, Virgin Money by up to 9 basis points, MPowered Mortgages by up to 10 basis points and Hodge Bank reduced its 50-plus range by up to 30 basis points.

“One lender to make slight increases was Gen H, which increased fixed rates on its five-year fixed deals by up to 14 basis points, but they also made reductions on its two-year fixed range of up to 12 basis points.

“A few eye-catching deals also surfaced this week, including a three-year fixed deal from Nationwide Building Society, now priced at 4.99% and available at 60% loan-to-value for second-time buyers, it carries free valuation and a green reward incentive and charges a fee of £999.

“NatWest/RBS moved to increase their standard variable rates this week by 25 basis points.

“As was widely anticipated, fixed-rate reductions took precedence this week, and the continued sentiment is for more fixed rate cuts to come.

“Borrowers reviewing the latest deals to surface would be wise to seek independent advice to go assess their options.”