It has been a quiet week for mortgage rate changes, very few lenders moved to tweak their fixed rates but there were a few withdrawing selected deals.
As Moneyfacts finance expert Rachel Springall points out the quieter setting resulted in the average two-year fixed mortgage rate falling slightly and the average five-year fixed rate remaining unchanged week-on-week.
Virgin Money launched a new ‘greener’ priced below 5% at 90% loan-to-value, Clydesdale Bank withdrew and launched some broker exclusive deals, some of which are priced below 5%. Dudley Building Society withdrew and launched some two-year fixed deals and Leeds Building Society withdrew a couple of deals over two- and five-year fixed terms.
Hanley Building Society withdrew its two-year fixed deal at 95% loan-to-value, Principality Building Society withdrawn selected two- and five-year fixed deals for first-time buyers at 95% loan-to-value, Saffron Building Society withdrew a five-year fixed deal at 90% loan-to-value, Vernon Building Society withdrew a couple of five-year fixed deals at 90% and 95% loan-to-value, but withdrew and replaced its five-year fixed mortgage 80% loan-to-value.
A couple of lenders decided to tweak fixed rates, with Digital Mortgages by Atom Bank reducing selected fixed rates by up to 0.45% and Nottingham Building Society increasing selected fixed rates by up to 0.15%.
Springall also picks out some eye-catching deals to surface this week, including a five-year fixed rate deal from Vernon Building Society, priced at 4.79% and available at 80% loan-to-value for all borrower types, it does not carry any incentives, but it does not charge a product fee, so, it could be an attractive choice for borrowers looking to save on the upfront cost of their mortgage.
“The fact that a few lenders are withdrawing products may raise eyebrows, but we are not seeing a mass exit. However, should more deals be withdrawn at higher loan-to-values, it may come as disappointing news to those who have a limited deposit, such as first-time buyers.”
She added: “ The deals that have disappeared this week may well resurface, perhaps when re-pricing activity picks up and counteracts the current subdued mortgage market.”
