Average fixes rose this week as markets bet that the Bank of England will push its first base rate cut into the second half of the year.
The average rate for a two-year fix edged up 4 basis points to 5.87%, while the average three-year fix rose 7 basis points to 5.64%, according to Moneyfacts.
The average five-year fix lifted 4 basis points to 5.44%, while the average 10-year fix jumped 14 basis points to 5.92%.
Two-year fixes
The largest rises in this term came at the 60% LTV average rate lifting 9 basis points to 5.39%, followed by the 95% LTV average rate, which rose 5 basis points to 6.10%.
The 90% LTV and 85% LTV average rates were both 3 basis points higher at 6.09% and 6.03%, respectively.
Three-year fixes
The biggest uplifts at this level saw the 90% LTV, 75% LTV and 70% LTV average rates all rise by 7 basis points to 5.68%, 5.43% and 5.84%, respectively.
This was followed by the 85% LTV and 80% LTV average rates, which both lifted by 6 basis points to 5.83% and 5.81%, respectively.
Five-year fixes
The largest rises in this term came at the 70% LTV average rate, which was 9 basis points higher at 5.80%, followed by the 60% LTV average rate up 7 basis points to 5.02%.
The 95% LTV average rate rose 5 basis points to 5.60%, while the 85% LTV average rate was up 4 basis points at 5.55%.
10-year fixes
The largest rises in this term saw the 70% LTV average rate jump 37 basis points to 6.70%, followed by the 60% LTV average rate, which was 17 basis points higher at 6.13%.
The 95% LTV average rate was unchanged at 5.75%, while the 85% LTV average rate lifted 2 basis points to 6.04%.
Moneyfacts finance expert Rachel Springall says: “Several lenders decided to increase selected fixed deals this week, outweighing cuts, but there were also deals withdrawn from the market, some of which were priced below 5%.
“As a result, both the overall average two- and five-year fixed mortgage rates rose by 4 basis points week-on-week.
“The prominent brands to amend fixed rates this week included TSB by up to 0.35%, Halifax by up to 20 basis points, HSBC by up to 24 basis points, first direct by up to 19 basis points, Lloyds Bank by up to 15 basis points, Virgin Money by up to 10 basis points and Barclays Mortgage by up to 10 basis points.
“Building societies made a few rate moves this week, those to increase fixed rates included Newcastle Building Society by up to 36 basis points (interest only), Yorkshire Building Society by up to 25 basis points, West Brom Building Society by up to 30 basis points, Nottingham Building Society by up to 20 basis points, Leeds Building Society by up to 20 basis points, Principality Building Society by up to 30 basis points and Vernon Building Society by 10 basis points.
“By contrast, Hinckley & Rugby Building Society decided to reduce selected fixed rates by up to 70 basis points as did Skipton Building Society by up to 27 basis points.
Springall adds :“Not to go unnoticed, The Co-operative Bank increased selected fixed rates by up to 38 basis points and also reduced by up to 7 basis points. More lenders increased fixed rates, such as LiveMore Capital by up to 52 basis points (interest only), Gen H by up to 20 basis points, Perenna by up to 16 basis points and Accord Mortgages by up to 40 basis points.
“A few lenders moved to withdraw selected fixed deals from the market this week. Darlington Building Society withdrew its 4.99% two-year fixed deal, Vernon BS withdrew its ‘head start’ 4.99% five-year fixed mortgage, Hanley Economic Building Society withdrew its two-year fixed rate mortgage priced at 4.99% and LendInvest Mortgages withdrew and replaced its fixed rate range. Bath Building Society and Leeds Building Society also decided to withdraw selected fixed rates.
“Some eye-catching deals also surfaced this week, including a three-year fixed rate deal from Vernon Building Society, priced at 4.69% and available at 80% loan-to-value for all borrower types and charges a product fee of £499, overall, it’s an attractive choice for borrowers with 20% deposit or equity.
“There was an uptick in rate moves this week, as many lenders appeared to be tweaking their range in response to a rise in swap rates, a complete contrast to the quieter first half of April. It will be interesting to see whether more rate rises will take precedence next week.
“Borrowers will still find some decent mortgage packages out there, but as we have seen this week some deals priced below 5% have been withdrawn from sale, so it is vital that applicants seek advice to navigate the latest options available to them.”
