The fixed rate mortgage market saw rate cuts outweigh rises this week.
As Moneyfacts finance expert Rachel Springall explains many lenders reviewed selected ranges, some citing fluctuating swaps as a reason to amend their pricing.
These movements led to a fall in the overall average two- and five-year fixed mortgage rates for a consecutive week.
Some prominent bands made selected fixed rate reductions this week, such as TSB reduced selected rates by up to 0.25%, Halifax reduced selected rates by up to 0.25%, HSBC reduced selected rates by up to 0.25%, first direct reduced selected rates by up to 0.19%. Virgin Money reduced selected rates by up to 0.22% as part of their intermediary exclusive range.
Activity amongst building societies was evident, those lenders to make cuts to selected fixed rates included Nottingham Building Society by up to 0.23%, Nationwide Building Society by up to 0.31%, Leek Building Society by up to 0.10%, Leeds Building Society by up to 0.10%, Furness Building Society by up to 0.30% and West Brom Building Society by up to 0.10%”.
The lenders to make a combination of rises and cuts included NatWest, which reduced selected rates by up to 0.20% but also increased by up to 0.04%, Accord Mortgages reduced selected rates by up to 0.34% but also increased by up to 0.15% and Yorkshire Building Society reduced selected rates by up to 0.46% but also increased by up to 0.05%.
There were more fixed rate reductions taking place with MPowered Mortgages reducing selected rates by up to 0.10% and Gen H reduced selected rates by up to 0.25%.
Springall point out: “Some eye-catching deals surfaced this week, including a five-year fixed deal from Yorkshire Building Society, priced at 5.31% and available at 85% loan-to-value, it carries an attractive incentive package, which includes £250 cashback and a free valuation.
A couple of lenders moved to increase their standard variable rates this week, such as Chorley Building Society and Leek Building Society by 0.25%.
“In a fluctuating SWAP rate environment, a few lenders have been vocal on why they have reduced fixed rate this week and it is hoped that fixed rates will continue to fall in the weeks to come,” Springall says.
