Soaring swap rates caused a small fixed rate mortgage increase this week, according to Moneyfacts, with more hikes expected.

The average two-year fix is now 5.6%, up from 5.59% a week ago, while the typical five-year fix also rose by 1bps, to 5.64%.

Moneyfacts personal finance analyst Caitlyn Eastell said: “While mortgage rate activity remained relatively quiet over the four-day week, swap rates soared to 30-day highs following escalating conflict between US and Iran.

“As a result, rate moves have been varied. These changes have reversed last weeks drops in average rates and it would be fair to assume that more lenders will start hiking rates in the coming weeks, leaving many borrowers feeling disheartened, particularly those due to remortgage.”

HSBC was the only major high street bank to make changes this week, reducing selected fixed rates by up to 11bps and increasing selected tracker rates by 5bps.

Many building societies also made rate tweaks, such as Newcastle Building Society reducing selected fixed rates by up to 25bps, but increasing one by 5bps.

Skipton Building Society reduced selected fixed rates by up to 18bps and increased others by up to 4bps, West Brom Building Society trimmed selected fixed rates by up to 30bps and Yorkshire Building Society cut selected fixed rates by up to 10bps.

Alongside rate changes, some lenders continued to refresh their ranges, with Newcastle Building Society launching new Affordability Boost fixes at 90% LTV and 95% LTV.

Fixed rate changes

• AIB (NI) – Two-year fixed rates increased by up to 9bps and five-year fixed rates by up to 10bps.
• April Mortgages – Fixed rates increased by up to 25bps.

• Danske Bank – Fixed rates increased by up to 58bps.
• First Direct – Selected fixed rates reduced by up to 19bps.
• Gen H – Fixed rates increased by 20bps.
• HSBC – Selected fixed rates reduced by up to 11bps.
• Marsden Building Society – Selected later-life and lending-into-retirement fixed rates increased by up to 15bps.
• Newcastle Building Society – Selected fixed rates reduced by up to 25bps, although one fixed rate increased by 5bps.
• Pepper Money – Selected fixed rates reduced by up to 61bps, although some products increased by up to 10bps.
• Skipton Building Society – Selected fixed rates reduced by up to 18bps, although some increased by up to 4bps.
• West Brom Building Society – Selected new-build fixed rates reduced by up to 30bps.
• Yorkshire Building Society – Selected fixed rates reduced by up to 10bps.

Tracker and variable rate changes

• HSBC – Selected remortgage tracker rates increased by 5bps.
• Skipton Building Society – Selected variable rates reduced by up to 11bps.
• Swansea Building Society – Medical professional, green and lending-in-retirement discounted variable rates increased by 30bps.

Product launches, withdrawals and other changes

• Atom Bank – End dates extended by three months across the range, to 31 January of the relevant year.
• Buckinghamshire Building Society – New three-year retirement discounted variable rate launched at 5.09% to 75% LTV; existing two-year 5.29% product withdrawn.
• Gatehouse Bank – New limited-edition refinance-only fixed rates launched at 5.68% for two years and from 5.63% for five years.
• Marsden Building Society – New five-year fixed rate at 5.59% to 80% LTV, with a £998 fee, free valuation and free legal fees for remortgages; 4.99% discounted variable rate extended to December 2028. Selected later-life products saw fees rise to £1,499.
• Newcastle Building Society – New Affordability Boost fixes launched at 5.40% to 90% LTV and 5.70% to 95% LTV, both with £999 fees. New trackers launched at 4.45% to 80% LTV, 4.65% to 90% LTV and 4.99% to 95% LTV, plus a 4.60% interest-only tracker to 85% LTV. Relevant end dates extended by one month.
• Pepper Money – New remortgage fixed rates launched from 5.38% for two years, plus Pepper 12 fixed rates from 7.03% at 70% LTV.
• Vernon Building Society – Selected fixed-rate mortgages withdrawn.
• West Brom Building Society – End dates extended by two months across all new-build products.
• Yorkshire Building Society – Selected fees increased from £995 to £1,495.