Moneyfacts: Rates continue to reduce

Posted on Tuesday, August 22, 2023

Rates are continuing to fall as the mortgage market starts to quieten after weeks of intensity, according to the latest Moneyfacts rate watch.

For two-year fixed all LTVs, the average rate has dropped slightly – from 6.8% on 11 August to 6.76% on 18 August 2023.

Two-year fixed rates at 95% LTV have fallen by 10% from 7.05% to 6.95%, while a two-year fixed for 85% LTV has reduced from 6.9% to 6.85% over the past week.

Meanwhile, the average rate for a two-year fix at 75% LTV has fallen by 0.03% from 6.68% to 6.65%.

For a five-year fixed at 90% LTV the average rate has decreased from 6.14% to 6.11%; while a five-year fix at 80% LTV has decreased from 6.37% to 6.35%.

Those taking on a five-year fix on 70% LTV, will now, on average, pay 6.48%  – down from

Notable lender rate cuts this week include Coventry Building Society reducing its fixed rate mortgages between 65% and 80% LTV by up to 0.27%.

The Co-operative Bank reduced selected fixed rates by up to 0.29%, while both Royal Bank of Scotland and NatWest announced cuts of 0.45% to selected fixed rates.

Moneyfacts spokesperson James Hyde says: “Following a period of intense activity in the mortgage market over recent weeks, the last few days have been slightly quieter.

“Lenders continue to adjust rates but are focusing on a smaller number of specific products rather than applying changes to their entire ranges.

“Similarly, the number of mortgage products available has continued to edge upwards, so borrowers should seek advice to ensure that they are considering all the options that are a match for their individual circumstances.”

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