The fixed rate mortgage cut momentum eased off this week with many lenders moving to instead increase rates.

In what has been called a ‘subdued’ market, rates rose across the board for average fixed deals in the week to Friday, 30 May.

Two-year fixes increased 0.03% to 5.13%, three year-fixes were up 0.01% to 5.03%, five-year fixes rose 0.03% to 5.10% and 10-year fixes were up 0.03% to 5.48% week-on-week.

Larger banks to increase select fixed rates this week included NatWest and RBS, pushing them up by up to 0.20%, Barclays Mortgage by up to 0.15%, HSBC by up to 0.16% and Virgin Money by up to 0.15%.  Santander increased rates by up to 0.10% and reduced selected rates by up to 0.04%.

Rate cuts continued to be popular among building societies, with Hinckley & Rugby cutting rates by up to 0.35%, Saffron Building Society by up to 0.20%, Family Building Society by up to 0.25% and Leek Building Society by up to 0.10%.

However, Skipton Building Society increased certain by up to 0.30% and reduced others by up to 0.10%, Principality Building Society increased by up to 0.40% but also reduced selected rates by up to 0.20% and Coventry Building Society increased by up to 0.10%.

Among the other lenders that increased rates this week were Gen H, who pushed them up by up to 0.29%, but Metro Bank made reductions of up to 0.20%.

Moneyfacts finance expert Rachel Springall says: “As June is just on the horizon it will be interesting to see if activity in the market picks up as the new month begins, whether that be with cuts, rises or product launches.

“The two- and five-year swap rates are slightly below their 30-day highs at present. However, the sticky inflation has led to expectations that borrowers may be waiting longer for further base rate cuts, yet this should not delay their plans to seek out a new deal. Its wise to get advice from a broker, to ensure they grab the best cost-saving package and lock into a competitive rate.”