The average rates for both the three-year fix and 10-year fix disrupted the common narrative this week, dropping by 15 basis points to 6.83% and 12 basis points to 5.66%, respectively.
However, the average rate for a two-year fix continued its tour upwards, finding 8 more basis points to come to 6.55%, while the average rate for a five-year fix grew 14 basis points, taking its price to 6.43%.
Two-year fixes
As one might expect, a huge increase took place at 95% LTV, with a 41 basis point rise taking the average rate here to 6.64%.
And at 60% LTV, the average rate rose 20 basis points, leaving it at 6.29%.
Meanwhile at 75% LTV, the average rate fell 7 basis points, moving to 6.49%.
Three-year fixes
Rates fell at almost every LTV bracket here this week. Highlights include the average rate at 95% LTV ticking down a single basis point, to 6.52% and, at 75% LTV, the average rate lost 21 basis points, which took its price to 6.71%.
There was only one rise recorded, which occurred at 90% LTV. Here, the average rate added 2 basis points on the week, lifting it to 6.23%.
Five-year fixes
The biggest change within this fix this week was at 65% LTV, where 59 more basis points took the average rate to 8.1%.
At 95% LTV, the average rate rose 41 basis points, to 6.41%.
There was one drop – at 75% LTV, where a single basis point fall gave a new rate of 6.47%.
10-year fixes
It was an action-packed week for the long-term fix, with a 39 basis point shift downwards taking the average rate for a 60% LTV mortgage to 5.44%.
Another sizeable drop took place at 75% LTV – an 18 basis point fall giving a price of 5.54%.
And at 95% LTV, things reversed, with a 13 basis point rise giving an average rate of 6.41%.
Moneyfacts finance expert Eleanor Williams says: “While uncertainty surrounding the UK economy continues, its impact on the mortgage sector remains evident. The level of product choice for borrowers has fluctuated again this week as providers revise their ranges.
“While we are starting to see lenders returning and launching deals to market, there are equally still many product withdrawals happening, which means that total availability is a little lower today than it was at the start of this week.
“Amongst those to launch products this week, TSB launched a few remortgage options, while Accord Mortgages introduced new fixed and new discounted variable rates. Virgin Money also launched new intermediary exclusives and Leeds Building Society refreshed its range, adding new fixed rate deals, including new interest-only options.
“However, rate re-pricing is still the common theme. Although we are now seeing some lenders make rate reductions, we are also still seeing more of the rate increases that have dominated updates of recent weeks.
“Danske Bank included some notable rate repricing in its latest range change, with some fixed rates going up by as much as 1.86%. Foundation Home Loans also made increases to its fixed range of up to 0.95% within their latest update, the NatWest group increased some shorter-term fixed rates by up to 0.40%, while some longer-term options increased by 0.75%. As well as introducing new options for both those purchasing and for those remortgaging, Cumberland Building Society also put up rates on its fixed deals by 0.53%.
“Those to cut initial rates this week included Kensington, which tweaked its range and included rate reductions of up to 0.75%, Generation Home, which made a couple of changes this week, both including rate reductions, with today’s latest update including cuts of up to 0.24% across its fixed rates, and Yorkshire Building Society were another provider to make reductions this week, reducing some longer term fixed deals by 0.30%.”
