Average fixed-rate mortgage prices rose this week, according to analysis by Moneyfacts, but largely due to major increases by one lender skewing the figures.
The latest Moneyfacts rate watch found that the typical two- and five-year fixed rate rose by 8bps this week, to 4.85% and 4.93% respectively.
The biggest rise was seen with two-year fixes to 65% LTV, which increased by 30bps to 5.15% on average, and to five-year fixes to 65% LTV, which rose 29bps to 5.13%.
Other large increases were made to two-year fixes to 95% LTV, which increased by 12bps on average.
However, much of this rise is down to the addition of a large range of products from specialist lender West One to the Moneyfacts mortgage dataset, according to Moneyfacts head of consumer finance Adam French.
More lenders were still cutting rates rather than raising them, he added.
French said: “Prospective borrowers will welcome the news that fixed rate cuts continued to dominate this week, however there has been a notable slowdown in activity as we close out January.
“Barclays and TSB, made, some notable sizeable, cuts to their ranges. Away from the high-street lenders, several challengers and building societies also made some headline-grabbing cuts to their fixed-rate products.
“However, many lenders may have pushed pause on any planned cuts as two- and five-year swap rates hit 30-day highs in response to a volatile week of news at home and abroad – with inflation data coming in a little hotter than hoped.”
Several lenders reduced their fixed rates this week, with notable cuts from Mansfield Building Society of up to 70 bps and Clydesdale Bank of up to 45 bps.
- Hinckley & Rugby Building Society: Selected and fixed rates – cut by up to 18 bps; discounted variable rates cut by up to 30 bps
- Marsden BS: Selected retirement fixed rates – cut by up to 30 bps
- TSB: Selected fixed rate – increased by up to 10 bps
- West Brom BS: Selected fixed rates – increased by up to 5 bps
- Barclays Mortgage – Selected fixed rates – cut by up to 35 bps; increased by up to 14 bps; Premier fixed rates – cut by up to 4 bps
- Cambridge BS – Standard & discount variable rates – cut by up to15 bps; Fixed rates – cut by up to 30 bps
- LendInvest Mortgages: Selected key worked fixed rates – cut by up to 15 bps
- Saffron BS: Selected self-employed & contract fixed rates – cut by up to 20 bps
- Hodge: Selected fixed rates – cut by up to 20 bps
- Mansfield BS: Selected fixed rates – cut by up to 70 bps
- Clydesdale Bank: Selected fixed rates – cut by up to 45 bps
- Skipton BS: Selected fixed rate – cut by up to 14 bps
- Accord Mortgages: Standard variable rate – cut by 25 bps
- Yorkshire Building Society: Standard variable rate – cut by 25 bps; Selected fixed rates – cut by up to 17 bps; increased by up to 3 bps.
