Average two-year fixes rose by 3 basis points to 5.42%, three-year fixes were up by 7 bps to 5.28% and five-year fixes by 5 bps to 5.14%.

There were some even bigger increases within certain loan-to-value tiers.

Biggest movers

Five-year fixes at 50% LTV rose by 14 bps to an average of 5.08%.

Average three-year fixes at 70% LTV increased by 13 bps to 5.83% and at 65% LTV they climbed 12 bps to 4.92%.Two-year fixes at 65% LTV were also up by 11 bps to 5.07%

The biggest increase was to three-year fixes at 100% LTV, where the average rate increased by 25bps to 4.93%, but as there are so few products in this category, the change could have been down to a single lender repricing.

Moneyfacts finance expert Rachel Springall says “Despite a drop to base rate this week, swap rates remain volatile in the lead up so fixed rate increases have taken precedence from lenders this week.”

Major repricing underway

The prominent brands to increase selected fixed rates this week included Virgin Money by up to 20 bps, but also reduced some by up to 6bps, Lloyds Bank and Halifax by up to 25 bps, HSBC by up to 14 bps, but also reduced some by up to 10 bps, First Direct by up to 16 bps, but also reduced some by up to 10 bps.

In the mutual sector, lenders increasing fixed rates included West Brom Building Society by up to 50 bps, Progressive Building Society by up to 10 bps and Coventry Building Society by up to 35 bps.

Others included Skipton Building Society by up to 26 bps Nottingham Building Society by up to 30 bps, Leek Building Society by up to 10 bps, Newcastle Building Society by up to 20 bps, but also reduced rates by up to 41 bps and Cumberland Building Society by up to 25 bps.

Other upward moves included Accord Mortgages by up to 10 bps, Perenna by up to 66 bps, Clydesdale Bank by up to 28 bps, Atom Bank by up to 30 bps and Gen H by up to 20 bps.

Foundation Home Loans raised rates by up to 20 bps, April Mortgages by up to 33 bps, Kent Reliance by up to 25 bps, Legal & General by up to 25 bps on one of its RIO mortgages and Hodge by up to 23 bps on its RIO mortgages.

Lenders watching swaps closely

Springall says: “As the Bank of England base rate dropped by 25 bps this week, we have already started to see some lenders quick to pass this cut onto their base rate trackers, which is to be expected. 

“Borrowers will no doubt hope these cuts will slowly pass through to them if they are sitting on a standard variable rate deal. 

“Since the Budget swap rates have been on the rise and lenders will no doubt be watching these closely. 

“Traditionally, in reaction lenders may hike on-sale fixed mortgage rates, but this can take a couple of weeks to be absorbed. 

“It’s worth remembering that base rate cuts are not guaranteed to be passed on outside of linked tracker rates. 

“The unprecedented volatility in interest rates seen over the past five years alone may persuade borrowers to act now and secure a longer-term fixed deal for peace of mind. 

“As has been the case for two years now, it is cheaper to lock into a five-year fixed mortgage than a two-year deal, based on average rates.”