Not surprisingly it was a relatively slow start to the week for mortgage rate movement given the Easter bank holiday.
However, as Rachel Springall points out activity picked up towards the tail of the week with well over a dozen lenders announcing fixed rate cuts.
In general, the reductions prevailed to push the average two-year and five-year fixed rates lower to 5.21% and 5.12% respectively.
The major brands to reduce selected fixed rates this week included First Direct by up to 0.33%, RBS and NatWest by up to 0.26%, Halifax by up to 0.21%, Virgin Money by up to 0.15%, Lloyds Bank by up to 0.21%, but also increased by up to 0.05%
Building societies made a few rate moves this week, those to reduce included Nationwide Building Society by up to 0.29%, Family Building Society by up to 0.15%, Principality Building Society by up to 0.15%, Cambridge Building Society by up to 0.40%, Monmouthshire Building Society by up to 0.45%, Skipton Building Society by up to 0.23%, but also withdrew some of its ‘limited edition’ deals, Yorkshire Building Society made cuts by up to 0.13%, but also made increases of up to 0.27%.
A few more lenders moved to reduce rates such as Gen H by up to 0.30%, Atom Bank by up to 0.35%, Aldermore by up to 0.30%, LendInvest Mortgages by up to 0.15%, MPowered Mortgages by up to 0.13%, Clydesdale Bank by up to 0.31% and Foundation Home Loans by up to 0.30%.
According to Springall one of the eye-catching deals to hit the market this week was a five-year fixed rate deal from Nationwide Building Society, priced at 3.89% and available at 60% loan-to-value for second-time buyers.
It includes a free valuation and offers a green reward incentive. The deal does charge a product fee £1,499, but it can be added to the mortgage advance. This could be an attractive choice for those looking for a competitive rate and minimise the upfront cost of their mortgage.
Springall commented: “Lenders have been keen to reprice their fixed rate mortgages this week, some by reasonable margins. The two- and five-year swap rates are sitting just shy of their 30-day lows and remain below 4%.”
She added: “More lenders joined the fray to now offer sub-4% mortgages, which is good news to borrowers hoping for lower rates when they come to refinance. Low rates are great but its imperative that borrowers consider the overall package of any mortgage before they commit.”
