Mortgage rates across the UK have dropped every day this week as lenders battle to win over prospective buyers with better deals.
As of Friday, the rate on average five-year fixed mortgages sat at 5.40%, according to comparison site Moneyfacts.
This followed consecutive declines over every day of the week, with the typical five-year rate having sat at 5.45% on Monday.
It also means average rates have dropped by more than one percentage point since last year, when average five-year mortgages were over 6.5% in late September 2023.
Barclays PLC (LSE:BARC) on Thursday became the latest major lender to cut mortgage rates, following a string of reductions across the market recently.
At 3.71%, the bank began offering the lowest rate on five-year fixes among rivals, though this was for those able to put down a 40% deposit, with the deal also including an £899 fee.
Nationwide Building Society also cut mortgage rates on Wednesday, taking its five-year rate to 3.74%.
This came after Nationwide looked to stoke mortgage competition further earlier in the week by lifting its lending limit to six times prospective owners’ salaries in a first for a major bank.