Average two and five-year fixed-rate mortgages have fallen by 0.4% this week, Moneyfacts reports. This means cheaper monthly repayments are now up for grabs!

Despite more sub-4% fixed deals hitting the market, the average rate across all loan-to-value (LTV) ratios for two, three, and five-year fixed-rate mortgages remains above 5%.

Big Banks Slash Rates

This week’s rate cuts were driven by building societies, with some major lenders making significant reductions:

• Halifax: Cut rates by up to 0.37%
• TSB: Reduced rates by up to 0.35%
• Virgin Money: Slashed rates by up to 0.20%

Other notable cuts include Principality Building Society (up to 0.54%), Nottingham Building Society (up to 0.20%), and Leeds Building Society (up to 0.30%).

More Deals on the Horizon

While a handful of lenders increased rates, experts predict that more reductions are on the way.

Caitlyn Eastell, spokesperson for Moneyfacts, said: “It would not be surprising to see lenders continue to make reductions across both variable and fixed rates in their ranges.”

Eye-Catching Deal Alert!

One standout offer comes from Virgin Money, offering a five-year fixed-rate deal at just 3.99% for borrowers with a 75% LTV. The deal also includes a £300 cashback incentive upon completion.

What This Means For You

This week’s rate drop presents an opportunity for both homebuyers and those looking to remortgage. With more lenders expected to cut rates in the coming weeks, it pays to shop around for the best possible deal.