Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Average Fixed Mortgage Rates Edge Down, Reports Moneyfacts

Average fixed rate mortgage prices have fallen slightly this week, according to the latest figures from Moneyfacts. The average two-year fixed rate dropped by 2 basis points to 5.73%, while the typical five-year fixed rate decreased by 1 basis point to 5.66%.

Moneyfacts also reported more significant reductions in higher loan-to-value (LTV) lending. The average 90% LTV two-year fixed rate fell by 4 basis points from 6.04% to 6%, and the equivalent five-year fixed rate dropped by 7 basis points from 5.87% to 5.8%.

A total of 27 mortgage lenders made notable changes to their products this week. Of these, ten lenders reduced selected rates, thirteen increased pricing, and nine launched new products or refreshed their offerings.

Among the changes, Barclays Mortgage reduced selected fixed rates by up to 15 basis points and increased tracker rates slightly. Halifax and Lloyds Bank both launched new 98% LTV Low Deposit products for first-time buyers and reduced selected fixed rates by up to 14 basis points. Chorley Building Society introduced a new Own New Rate Reducer product at 95% LTV with a cashback incentive.

Other lenders made a mix of increases and reductions. For example, Leeds Building Society reduced fixed rates by up to 36 basis points and launched new fixed rate ranges, while NatWest and Royal Bank of Scotland increased fixed rates by up to 24 basis points. Some lenders, such as Suffolk Building Society, temporarily withdrew all fixed rate mortgages.

Moneyfacts noted that the latest changes may indicate some lenders are targeting more niche borrower segments rather than broad mainstream repricing. The report also highlighted that higher borrowing costs are having a greater impact on higher-priced southern housing markets, while lower average property values in northern regions have helped soften affordability pressures.

These developments are relevant for UK letting agents and inventory clerks monitoring mortgage trends, as shifts in lending rates and product availability can influence rental demand and property market activity.