Average fixed rate mortgages fell again this week, despite lenders having a slow start to the week, according to Moneyfacts.
The average two-year fix fell 5bps to 5.68% compared to last week, with the typical five-year deal falling 3bps to 5.63%, the latest Moneyfacts rate watch shows.
At higher loan-to-value tiers, the average two-year fixed rate at 95% LTV dropped from 6.3% to 6.22% week-on-week, while at 90% LTV the rate fell from 6% to 5.94%.
The largest falls were seen in 10-year fixes to 100% LTV, which fell 25bps to a typical 6.65%, and two-year fixes to 70% LTV, which dropped by 19bps to an average of 5.29%.
Moneyfacts finance expert Rachel Springall said: “Despite a slow start to the week for mortgage rate activity following the bank holiday weekend, over a dozen lenders still made fixed rate cuts.
“Swap rates are lower than they were a month ago, fixed rates on average have continued to fall away from their peaks in April. It has now been a full three months since the unrest in the Middle East began to cause mayhem in the mortgage market, so borrowers will be hoping for more stability in the weeks ahead.
“However, as seen recently, markets need firm plans on the reopening of the Strait of Hormuz and what that will mean for future rate expectations, until then they will remain sceptical. Even if the Strait is reopened and the global tensions ease, rising living costs are still expected to creep up on UK households this year.”
Fixed rate moves
- April Mortgages: reduced by up to 25bps
- Bank of Ireland (Intermediaries): reduced by up to 53bps
- Bank of Ireland UK: reduced by up to 10bps
- Barclays Mortgage: reduced by up to 43bps
- Coventry Building Society: reduced by up to 16bps
- Gen H: reduced by up to 30bps
- Kensington: reduced by up to 15bps and increased by up to 1bp
- Leek Building Society: reduced by up to 20bps
- LiveMore Capital: reduced by up to 10bps
- NatWest: reduced by up to 21bps
- NatWest Intermediary Solutions: reduced by up to 21bps
- Perenna: increased by up to 66bps
- Royal Bank of Scotland: reduced by up to 21bps
- Skipton Building Society: reduced by up to 29bps and increased by up to 1bp
- Vida Homeloans: reduced by up to 10bps
Non-rate changes
- Accord Mortgages: end dates extended across range
- Bank of Ireland (Intermediaries): new 90% LTV fixed rates launched; selected end dates extended
- Bank of Ireland UK: new 90% LTV fixed rates launched; selected end dates extended
- Hanley Economic Building Society: discounted variable and interest-only discounted variable products withdrawn and replaced with new range
- Kensington: selected Residential Select fixed products withdrawn
- Saffron Building Society: new contractor, self-employed, premier income and professional fixed ranges launched
- Skipton Building Society: end dates extended; new delayed start, purchase and remortgage fixed ranges launched
- Tipton & Coseley Building Society: Family Assist discounted variable product withdrawn
