Average fixes edged higher this week, as lenders adjust to market expectations that a base rate cut from the Bank of England may not come until the autumn, despite inflation hitting its 2% target.   

The average rate for two- and three-year fixes increased by a single basis point to 5.97% and 5.75%, respectively.  

The average five-year fix was up 2 basis points to 5.55%, while the average 10-year fix fell 2 basis points to 6.01%.    

Two-year fixes      

The largest movements in this term saw the 65% LTV average rate jump 14 basis points to 5.86%, while the 50% LTV average rate fell 8 basis points to 5.74%.  

The 95% LTV average rate was 2 basis points higher at 6.26%, while the 85% LTV average rate rose by a single basis point to 6.12%.    

Three-year fixes  

The biggest uplift at this level saw the 70% LTV average rate rise 3 basis points to 5.75%.  

The 95% LTV average rate rose by a single basis point higher to 6.22%, while the 85% LTV average rate was 2 basis points higher at 5.99%.  

Five-year fixes  

The largest rises in this term came at the 65% LTV average rate, which jumped 17 basis points to 5.56%.  

The 95% LTV average rate rose by a single basis point higher to 5.78%, while the 85% LTV average rate was 2 basis points higher at 5.66%.  

10-year fixes  

There was little movement at this level, apart from the 70% LTV average rate, which fell 4 basis points to 6.88%, the 60% LTV average rate, which eased 3 basis points to 6.18% and the 75% LTV average rate, which slipped 2 basis points to 5.62%.  

Moneyfacts spokesperson Caitlyn Eastell says: “It has been another quiet week for mortgage changes, a handful of lenders have tweaked selected rates within their ranges with a few also withdrawing or launching new deals.   

“As a result, the average two-year fix rose by a single basis point and the average five-year fix rose by 2 basis points.  

“The prominent brands to reduce fixed rates this week included HSBC by up to 17 basis points, first direct by up to 8 basis points but it also increased fixed rates by up to 18 basis points, and Barclays reduced by up to 31 basis points.  

“Building societies took up the majority of alterations this week, those to reduce included West Brom Building Society by up to 29 basis points, Suffolk Building Society reduced a five-year fixed deal by 10 basis points, Skipton Building Society by up to 26 basis points while also increasing by 10 basis points and withdrawing a two-year deal, Furness Building Society reduced fixed rates by up to 15 basis points as well as withdrawing a two-year fix.   

“Other Building Societies to increase included Principality BS by 40 basis points on a five-year fix. We have also seen some two-year fixed deals pulled from the market this week by Hanley Economic Building Society and Mansfield Building Society. Some new deals were also introduced by Leek Building Society and Marsden Building Society.  

“Not to go unnoticed, Metro Bank increased fixed rates by 20 basis points, MPowered Mortgages reduced some fixed deals for house purchase by up to 14 basis points, United Trust Bank increased by up to 40 basis points and Foundation Home Loans reduced fix rates for remortgage customers by up to 30 basis points.  

“Some eye-catching deals also surfaced this week, including a five-year fixed rate deal from Leek Building Society, priced at 4.93% and available at 90% loan-to-value, it carries an attractive incentive package which includes a free valuation and £400 cashback, it also carries a reasonable product fee of £995.   

“This may be an enticing deal for first-time buyers who have enough for a 10% deposit and are looking to save on the upfront cost of their mortgage.  

“The fact that a few lenders are withdrawing products may raise eyebrows, especially as some are at higher loan-to-values, however, we are not seeing a mass exit and most providers are just adjusting their rates in line with swaps.   

“It is possible that the deals that have been withdrawn may well resurface once pricing activity picks up. Borrowers would be wise to seek independent professional advice to go over the best and latest options available to them.”