Lenders have begun to pass on the increase in the Bank of England base rate as average trackers rose by 5 basis points over the week to 4.73%, but fixed rates have dipped slightly.
The latest Moneyfacts rate watch data shows the average two-year fix is down from 5.97% to 5.96% and the average five-year fix from 6% to 5.99%.
Lenders made mixed moves on pricing this week, but they included some significant cuts of up to 30bps by Barclays and up to 40bps by Cambridge Building Society.
Accord lowered its 95% loan-to-value deals and £5,000 deposit deal by 18bps.
April Mortgages and Gen H also reduced selected fixed rates.
Santander and Nationwide made mixed changes targeting particular borrowers.
Moneyfacts head of consumer finance Adam French says: “It was a mixed picture in the mortgage market this week as the Bank of England raised base rate from 3.75% to 4%.
“A further rise to 4.25% is widely expected in December or February.
“Several lenders have already increased their tracker rates in line with base rate, with more expected to follow in the coming days and weeks.
“For someone with a £250,000 mortgage over 25 years, a 0.25 percentage point increase adds around £37 a month to repayments.
However, French says the picture for fixed mortgage rates is quite different.
He adds: “Fixed-rate pricing is still mixed, with sizable cuts from several big-name lenders offset by increases elsewhere.
“Current fixed mortgage rates already reflect market concerns about further base rate increases, with markets widely anticipating rates could peak at 4.5%-4.75%.
“Another significant jump in fixed mortgage rates is unlikely simply because the Bank of England raised rates this week.
“The small falls in the Moneyfacts average fixed rates suggest lenders are continuing to compete despite the rise in base rate.
Notable rate changes this week:
Accord Mortgages – fixed rates reduced by up to 18bps; trackers increased by 25bps; new Cascade fixed rates launched up to 95% LTV.
April Mortgages – fixed rates reduced by 25bps.
Barclays – selected fixed rates reduced by up to 30bps; tracker rates increased by 25bps.
Cambridge Building Society – selected two-year fixed rates reduced by up to 40bps.
Gen H – selected fixed rates reduced by up to 25bps.
Halifax – selected fixed rates reduced by up to 22bps; variable rates reduced by up to 11bps; end dates extended.
Hinckley & Rugby Building Society – credit Assist and Credit Renew rates increased; selected products withdrawn; new discounted variable rate launched up to 95% LTV with cashback.
Leeds Building Society – selected fixed rates increased by up to 10bps; new first-time buyer and home mover fixed rates launched; interest-only products withdrawn; trackers increased by 25bps.
Leek Building Society – new discounted variable rates launched from 4.90%, including interest-only lending.
Lloyds Bank – selected remortgage fixed rates reduced by up to 22bps; variable rates reduced by up to 11bps.
Nationwide Building Society – selected fixed rates reduced by up to 15bps or increased by 3bps; tracker rates increased by up to 10bps.
Santander – selected fixed rates reduced by up to 14bps or increased by 11bps; new trackers launched from 4.30%.
The Mortgage Lender – selected fixed rates increased by up to 35bps.
Virgin Money – selected fixed rates reduced by up to 17bps; trackers increased by 25bps.
West Brom Building Society – selected fixed rates increased by up to 16bps; end dates extended by three months.
