Weekly rate watch: Five-year fix rate falls; others static | Mortgage Strategy

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The only average fixed rate to move this week was the five-year fix, according to Moneyfacts.

In total, the average five-year fix dropped form 2.71 per cent to 2.67 per cent.

The two-year fix stayed at 2.42 per cent, the three-year fix at 2.90 per cent and the 10-year fix at 2.85 per cent.

Two-year fix

The largest movement seen within this LTV was a 0.04 per cent gain, which took place at 50 per cent LTV. Here, the average rate went from 2.05 per cent to 2.09 per cent.

Meanwhile, a 0.03 per cent fall occurred at both 75 per cent LTV and 80 per cent LTV.

The former average rate dropped from 2.28 per cent to 2.25 per cent and the latter from 2.70 per cent to 2.67 per cent.

Three-year fix

The only change here was at 75 per cent LTV, where the average rate increased from 2.42 per cent to 2.44 per cent.

Five-year fix

At 75 per cent LTV, the average rate shrank 12 basis points, going from 2.55 per cent to 2.43 per cent.

There were other drops, too – at 80 per cent LTV the average rate fell from 2.99 per cent to 2.91 per cent and, at 65 per cent LTV, from 2.13 per cent to 2.08 per cent.

10-year fix

There were no changes here this week.

Moneyfacts finance expert Eleanor Williams says: “Slightly increased levels of activity in the residential mortgage sector this week, with some noteworthy changes from a number of lenders.

“Nationwide and Post Office for Intermediaries were amongst those providers making rate reductions to a selection of products; for both providers this included decreases of up to 0.20 per cent, while the NatWest group reduced selected fixed rate deals for house purchase by up to 0.22 per cent, with some of its remortgage deals receiving either a cut of up to 0.02 per cent or increases of up to 0.20 per cent.

“In a positive move likely to be welcomed by borrowers, especially first-time buyers, there were also a handful of lenders launching in the 90 per cent LTV tiers, including Platform, Digital Mortgages by Atom Bank, TSB and Yorkshire Building Society. Halifax also increased its maximum LTV to 85 per cent on a couple of its FTB deals.

“As updates to ranges continue to come in thick and fast as providers keep pace with the changing landscape, borrowers would be wise to seek the support and guidance of a qualified advisor, to keep up with what options may be available to them.”


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