Mortgage rates saw another round of cuts this week, with mutual lenders leading the charge.

Moneyfacts data shows that, in the week leading up to 11 April, the average rate for two-year fixed residential mortgages dropped by 0.04%, settling at 5.29%. Three-year and five-year fixed rates mirrored this decline, both falling by 0.04% to 5.16% and 5.14%, respectively.

Longer-term deals also saw reductions, with the average rate across all 10-year fixed mortgages decreasing by 0.06% to 5.51%.

Several major lenders reduced selected fixed rates, including Barclays Mortgage, which cut rates by up to 0.38%, and TSB, which lowered them by up to 0.25%.

Building societies were active as well. West Brom Building Society trimmed rates by up to 0.39%, Furness by up to 0.30%, Melton by up to 0.29%, Coventry by up to 0.25%, Vernon by up to 0.20%, Leek by up to 0.16%, Newcastle by up to 0.15%, Monmouthshire by up to 0.10%, and Darlington by up to 0.20%.

Moneyfacts finance expert Rachel Springall comments: “Despite wider stock market chaos there has been a spell of good news for mortgage borrowers as lenders have been cutting cuts this week.

“The two- and five-year swap rates are sitting just shy of their 30-day lows and remain below 4%. It traditionally takes a couple of weeks for lenders to respond to swap market volatility, but usually once a notable brand moves to cut mortgage rates, others tend to follow suit.

“There are a couple of lenders already offering sub-4% mortgages today, but the pool of these could widen. Barclays and Coventry Building Society were the latest lenders to now offer sub-4% deals, but it is important for borrowers to consider the overall package of any mortgage, not just the initial rate. Borrowers would be wise to seek advice to navigate the deals available to them and see if it is the right time to refinance.” 

Source: Rebekah Commane, Mortgage Strategy