Average headline mortgage fixed rates across all major house purchase loan values crept higher again this week, according to data from Moneyfacts.
The average rates for two-year a fix lifted by 2 basis points, to 3.05%, while a three-year fix edged up 1 basis point to 3.02%.
Over longer terms, an average five-year fix lifted by 3 basis points to 3.20%, while an average 10-year fix edged up 2 basis points to end the week at 3.23%.
Two-year fixes
The biggest gains posted within this fix came at the 60% loan-to-value average rate, which rose by 6 basis points to 2.66%, and 75% LTV average rate, which lifted by 5 basis points to 2.94%.
However, A 95% LTV average rate fell by 4 basis points to 3.32%, and an 80% LTV average rate was unchanged at 3.11%.
Three-year fixes
A 95% LTV average rate slipped by 1 basis point to 3.23%, while a 75% LTV average rate fell by 2 basis points to 2.85%.
The biggest gain was a 100% LTV average rate, which lifted 5 basis points to 3.69%, while a 90% LTV average rate rose 2 basis points to 3.13.
Five-year fixes
The biggest rises within this fix came at the 60% LTV average rate, which lifted by 6 basis points to 2.84% and 75% LTV average rate, which lifted by 5 basis points to 3.12%.
A 95% LTV average rate edged up by 1 basis point to 3.48, while a 90% LTV average rate rose by 2 basis points to 3.24%
10-year fixes
There was little movement within this mark. An 80% LTV average rate and 75% LTV average rate both rose by 2 basis points to 2.94% and 3.00%, respectively. All other fixes were unchanged.
Moneyfacts expert Eleanor Williams says: “Following the Bank of England’s decision to raise its base rate to 1% yesterday, several mortgage providers have already updated their ranges. HSBC and first direct, Barclays Mortgage and Santander are amongst those who have added 0.25% to their bank base rate linked products such as trackers and revert rates, as have Precise Mortgages, United Trust Bank and The Mortgage Lender.
“Earlier this week we also recorded increases to standard variable rates from a number of the building societies, including Earl Shilton Building Society, Cumberland Building Society and Buckinghamshire Building Society, in reaction to the prior Bank of England rate rises.
“Other changes this week have followed the recent trend, with average rates continuing to climb in many sectors. Included in the latest update from Metro Bank were notable rises of up to 0.50%. Both Lloyds Bank and Halifax updated selected deals for remortgage borrowers with increases of up to 0.42%.
“Elsewhere, the NatWest group applied increases of up to 0.35% to selected fixed rates, and also removed the cashback incentive from their green products. This week also saw Newcastle Building Society include increases of as much as 0.39% to some of its fixed rates, as well as removing a cashback and free valuation incentive from one of its deals as well.
“Skipton Building Society applied rises of up to 0.42% to variable tracker rates and up to 0.30% on various fixed rate deals, although on some of its 10-year fixed rates reductions of 0.05% were made.
“Product availability had rallied in the residential sector over recent weeks, but we saw withdrawals from various providers since the start of May. These included Hodge cutting its 50+ deals at 50% and 60% LTV, both Aldermore and Saffron Building Society each pulled a number of fixed-rate products, and Metro Bank withdrew its three-year fixed rate deals from sale. Kensington also removed all special edition products.
“However, balancing this slightly are various of the mutuals, such as West Brom Building Society, Nottinghamshire Building Society and Newcastle Building Society, who all included new launches in their updates.”
