A few lenders increase selected fixed rate mortgages earlier in the week, including major banks, but cuts followed by other lenders as the week drew to a close.
As Moneyfacts finance expert Rachel Springall highlights these moves led to a slight rise of 0.01% to the five-year fixed rate to 5.00%, but an overall fall of 0.01% to the average two-year fixed to 4.96%. The Moneyfacts Average Mortgage Rate stands at 5.00%.
The big-name lenders to increase selected fixed rates this week included NatWest by up to 0.20% and Santander by up to 0.11%, which also reduced some rates by 0.06%.
In contrast, HSBC reduced by up to 0.12% and Barclays cut one of its premier deals by 0.14%. Among these moves, first direct made a raft of reductions, of up to 0.21% to close off the week.
Building societies to make rate moves this week included, Vernon Building increasing rates by up to 0.15%; and Nottingham Building Society by up to 0.10%.
While Saffron Building Society reduced selected rates by up to 0.20%, as did Scottish Building Society by up to 0.30%.
Leeds Building Society cut by up to 0.35% and launched new deals which included some at 95% loan-to-value, Coventry Building Society cut by up to 0.08% and rose selected fixed rates by up to 0.10%.
Principality Building Society made cuts of up to 0.20% as well as increases of up to 0.04%. There were also some new fixed deals launched by Marsden Building Society at 95% loan-to-value.
Gen H proceeded to increase selected fixed rates by up to 0.15%, as did April Mortgages by up to 0.20%, and Hodge reduced or increased some deals by 0.20%.
The Co-operative Bank for Intermediaries cut by up to 0.13%, as did Kensington by up to 0.44%, and finally, Vida Homeloans reduced by up to 0.65% but also launched a new 95% loan-to-value deal.
Springall said one eye-catching deal this week was a two-year fixed rate deal from first direct, after a small rate cut, it is now priced at 3.85% and available at 75% loan-to-value for house purchase customers.
“It includes a free valuation and charges a product fee of £490. The deal is a great choice for those looking for a competitive rate and save on the upfront cost of their mortgage.”
“In contrast to last week, there were a shift from some lenders to increase rates in their range earlier in the week, which is perhaps expected as a result of swap rates hitting 30-day highs.
“First-time buyers in particular might be concerned of rising rates, but it is worth noting that the market for higher loan-to-value deals is stable, and there are some competitive options that can help borrowers save on the upfront cost.”
Springall stressed that just this week alone, a few lenders had launched some new options at 95% loan-to-value, which was good to see. “The re-pricing of deals can fluctuate as lenders reassesses their margins, but they can also choose to cut rates or launch new offers to entice more borrowers to reach any end of year targets.”
