Despite a reduction to interest rates by the Bank of England last week, fixed rate increases continue to be the main trend.
And as Moneyfacts spokesperson Caitlyn Eastell points out with many of the biggest lenders altering their ranges, as a result there are no longer any sub 4% deals available outside of Northern Ireland.
Week-on-week the average two-and five-year fixed rate rose by 0.08% to 5.50% and 5.22%, respectively.
The prominent brands to increase selected fixed rates this week included Virgin Money by up to 0.20%, TSB by up to 0.30%, Royal Bank of Scotland by up to 0.35%, NatWest by up to 0.35%, first direct by up to 0.30%, Barclays Mortgage by up to 0.56%, HSBC by up to 0.20%, and Santander by up to 0.29%.
Building societies also made a few rates move this week, those to increase fixed rates included West Brom Building Society by up to 0.25%, Yorkshire Building Society by up to 0.55%, Furness Building Society by up to 0.10%, Buckinghamshire Building Society by up to 0.30%, Nationwide Building Society by up to 0.20%, Leek Building Society by up to 0.13%, Leeds Building Society by up to 0.27%, and Vernon Building Society by up to 0.25%.
Not to go unnoticed, a few more lenders moved to increase rates which included Kensington by up to 0.20%, Accord Mortgages by up to 0.25%, and Pepper Money by up to 0.15%.
Eastell highlighted some eye-catching deals to surface this week, including a five-year fixed rate deal from Virgin Money, priced at 5.14% and available at 95% loan-to-value for first-time buyers, the deal doesn’t charge any product fees and adding to its appeal has an attractive incentive package which includes a free valuation and £300 cashback.
She added: “It’s not all doom and gloom, a handful of lenders have moved to reduce on a selection of their fixed rate offerings and some eye-catching deals for first-time borrowers continue to float about. Average rates continue to sit below this year’s peaks despite many lenders moving to increase their deals. Swap rates are on the rise due to increased gilts as the new labour government secures more funding, so it is plausible we will continue to see lenders increasing their rates.
In any case, its not always a guarantee that base rate reductions will be passed on to borrowers outside of tracker deals.”
