Average rates across all LTVs were quiet at all fixed rate categories this week, but at higher LTVs there were significant changes, shows new data from Moneyfacts

Two-year fixes

Despite the headline rate sticking at 1.99 per cent across the week, there was plenty of movement within specific LTVs.

The biggest changes were at 95 per cent LTV, where the average rate increased from 3.30 per cent to 3.51 per cent, and at 90 per cent LTV, where the average rate jumped from 2.35 per cent to 2.66 per cent.

The only fall was at 75 per cent LTV, where the average rate shed two basis points, going from 1.95 per cent to 1.93 per cent.

Three-year fixes

Here the average rate dropped from 2.26 per cent to 2.23 per cent. As in the two-year fix, a gentle change across all LTVs masks bigger movements within.

At 90 per cent LTV the average rate flew upwards from 2.69 per cent to 3.14 per cent and at 85 per cent LTV, the average rate grew a more modest amount – from 2.11 per cent to 2.16 per cent.

The average 95 per cent LTV rate dropped from 3.36 per cent to 3.18 per cent.

Five-year fixes

Across all LTVs, the average five-year rate nudged upward only slightly, from 2.23 per cent to 2.24 per cent.

At 90 per cent LTV, the average rate increased from 2.62 per cent to 2.97 per cent, with the second most significant change being at 70 per cent, with the average rate moving a relatively paltry five basis points, from 2.39 per cent to 2.44 per cent.

10-year fixes

The average rate here dropped from 2.65 per cent to 2.61 per cent, with no significant changes evident at any LTV band.

Moneyfacts financial expert Eleanor Williams says: “Although it may have been disappointing for prospective borrowers to have seen further contraction in the higher LTV mortgage market, with a number of lenders pulling their 90 per cent options, some providers have braved new launches this week, with Saffron Building Society and Accord Mortgages both returning deals for first-time buyers to their ranges.

“However, this remains a sector which has been significantly impacted by the Coronavirus pandemic, and these are unprecedented and uncertain times for both borrowers and lenders alike. As well as operational difficulties, high levels of pent-up demand unleashing as the property market re-opened, there is also concern around the possibility of negative equity, as there is worry that potentially property prices may drop in the months to come.

“If borrowers are looking to explore their purchase or remortgage options at the moment, particularly if they have a low level of deposit or equity, they would be wise to seek independent financial advice to go through their options, as what products are available, and the criteria and requirements of providers continues to update with regularity.”