There was a positive shift in the mortgage market this week, as lenders made a mix of increases and reductions.
As Moneyfacts finance expert Rachel Springall went on to explain this included some high street banks, with the biggest cuts making moves to adjust rates.
“The fluctuating rates resulted in the average two-year fixed mortgage rate falling slightly and the average five-year fixed rate remaining unchanged week-on-week.”
The prominent brands to amend selected fixed rates this week included NatWest and RBS which increased by up to 0.05% and Santander which increased by up to 0.33%. However, TSB moved to cut rates by up to 0.10%, as did HSBC by up to 0.18% as well as Barclays Mortgage by up to 0.45%.
HSBC also pulled its ten-year fixed rate mortgages. Virgin Money launched some intermediary exclusive deals, fixed for five years.
Building societies made a few rate moves this week, those to increase fixed rates included Cumberland Building Society by up to 0.15%, Bath Building Society by up to 0.10%. In contrast, West Brom Building Society reduced selected fixed rates by up to 0.31%.
There were also a few product withdrawals this week, with Vernon Building Society, West Brom Building Society, Skipton Building Society withdrawing some deals, but Progressive Building Society re-launched its mortgage range. Hinckley and Rugby Building Society launched new ‘visa’ mortgages, fixed for two- or five-years, and Bath Building Society also launched some two- and five-year fixed higher loan-to-value deals.
Not to go unnoticed, MPowered Mortgages made cuts of up to 0.35% on selected fixed rates and withdrew some five-year fixed deals, but Gen H and The Mortgage Lender increased selected fixed rates by up to 0.20%. Finally, Digital Mortgages by Atom Bank increased selected rates by up to 0.10%, but also withdrew some of its ‘prime’ fixed deals.
Springall also pointed to some eye-catching deals which surfaced this week, including a two-year fixed rate deal from MPowered Mortgages, priced at 4.89% and available at 60% loan-to-value for house purchase customers, it carries a free valuation incentive and does not charge a product fee, overall, it’s an attractive choice for borrowers looking to save on the upfront cost of their mortgage.
She added: “In complete contrast to just two weeks ago, some of the biggest banks moved to cut their fixed mortgage rates this week, but there were still a few rate rises present as well as product launches. There is hope for more lenders to review their pricing in the coming weeks, particularly as swap rates are lower than there were around a month ago. Amidst this activity, there are lenders withdrawing deals from their range, which includes some longer-term fixed deals.”
