Average rates have fallen by up to 0.17% compared to last week.

Swap rates have been rising in recent weeks and concerns about persistent inflation is a key driver.

Own New, Retrofit Boost, shared ownership and remortgage rates are among those affected.

The average two-year fixed rate is still 0.23% higher than the five-year equivalent.

This is the first time HSBC has offered Premier customers an exclusive two-year fixed rate since 2019. 

The rate cuts impact both new purchase and remortgage three-year fixed rates.

Rates have reduced across residential, Right to Buy, and Deposit Unlock products.

The lender has also made changes to its Energy Efficient Homes Cashback mortgage.

The lenders have joined Leeds Building Society in reducing rates during the first week of January.

Despite the monthly fall, mortgage approvals remain above their 12-month averages.