The Rightmove weekly mortgage tracker found that the biggest rate cut since last week was a 0.1 per cent reduction on two-year fixed deals at 95 per cent LTV.
The average rate for this option fell from 5.62 per cent as of 4 April to 5.52 per cent as of 12 April.
The five-year fixed alternative saw a smaller reduction from 5.07 per cent to 5.06 per cent.
Despite the reduction, rates at 95 per cent LTV are still significantly higher than they were a year ago when the average two-year fix was 3.14 per cent and the average five-year fix was 3.39 per cent.
Smaller cuts elsewhere
Mortgages at other LTV tiers also declined but by a smaller margin.
The average rate for a two-year fix at 90 per cent LTV fell by 0.04 per cent to 5.14 per cent this week, while the equivalent average five-year fix dropped by 0.03 per cent to 4.75 per cent.
At 85 per cent LTV, the average two-year fixed rate is currently 4.89 per cent, down from 4.91 per cent last week and the average five-year fixed rate is 4.5 per cent, down from 4.53 per cent.
At 75 per cent LTV, the average two-year fixed rate is 4.6 per cent while the average five-year fix is 4.28 per cent. This is compared to respective rates of 4.65 per cent and 4.32 per cent last week.
The average rate for a two-year fix at 60 per cent fell by 0.02 per cent to 4.5 per cent, while for a five-year fix, this dropped by 0.01 per cent to 4.17 per cent.
The rates are based on products across 95 per cent of the mortgage market excluding specialist lenders, with fees of around £999.
Matt Smith, mortgage expert at Rightmove, said: “Average rates have crept down again this week, but the pace of change has dropped a little, with the biggest week-on-week reduction being 0.1 per cent for 95 per cent two-year fixed deals.
“This lull is likely to be a combination of the Easter break limiting activity, and lenders taking stock following a very active period of price cuts across the market.”
More to come next week
Smith added: “We can probably expect a similar pattern in the coming week, although there are increasing signs of competition at lower LTVs. There are now nine lenders offering five-year fixed-rate deals below four per cent at 60 per cent LTV, and two lenders now offering a sub-four per cent five-year fixed rate to those with a 25 per cent deposit.
“This is the first time that a high-street lender has offered a 75 per cent LTV rate below the four per cent mark since mid-September last year.”
