 will not increase its base rate, a measure it takes to slow inflation, by as much as expected. This is good news for mortgage rates, as a higher BoE base rate has a negative knock-on effect on home loans. has reduced its rates by up to 0.35% and has cut rates by the same amount. Meanwhile, has lowered its fixed-term mortgage rates by up to 0.55%. It comes as Moneyfacts said the average two-year fixed mortgage rate currently stands at 6.81%, down from 6.83% yesterday. Meanwhile, today's average five-year fixed residential mortgage rate is 6.34%. Here is the full list of banks and building societies slashing rates: Building Society has reduced rates on five of its switcher mortgage products by up to 0.35%. Switcher mortgages are only available to existing customers coming to the end of their existing fixed-term deal and looking for a new one. The lender has cut its five-year fixed rate 60% loan-to-value (LTV) with £999 fee product to 5.24%, a fall of 0.25%. Meanwhile, its two-year fixed rate at 60% LTV without a fee is now 5.99%, a drop of 0.35%. has cut rates on its residential mortgages by an average by up to 0.35%. The bank is offering a two-year fixed rate deal at 60% LTV with a £999 fee at 6.14%, down by 0.10%. Meanwhile, the lender's five-year fixed rate deal at 85% LTV with £999 fee is 5.74%, down by 0.20%. is also now offering two and five-year remortgage deals with free legal fees or £300 cashback . has reduced rates on some its two-year fixed term deals by up to 0.55%. A spo){kind=link}
SIX banks and building societies have slashed their fixed-term mortgage rates after inflation slowed more than expected.
Nationwide, HSBC, TSB, Yorkshire Building Society, Coventry Building Society and MPowered have all reduced rates by up to 0.55%.
It comes after inflation figures last week revealed prices are rising by 7.9% compared to 8.7% the previous month.
The slowdown has led to expectations the Bank of England (BoE) will not increase its base rate, a measure it takes to slow inflation, by as much as expected.
This is good news for mortgage rates, as a higher BoE base rate has a negative knock-on effect on home loans.