Weekly rate watch: Three-year fixed rate biggest riser | Mortgage Strategy

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The average rate for a three-year fixed mortgage rose from 2.75 per cent to 2.79 per cent this week, shows data from Moneyfacts.

The average five-year fixed rate rose too, from 2.69 per cent to 2.70 per cent, while the average two-year fix stayed at 2.52 per cent and the 10-year fix at 2.85 per cent.

Two-year fixes

Within this fix, the biggest change was seen at 90 per cent LTV, where the average rate dropped from 3.63 per cent to 3.57 per cent.

There was no movement elsewhere but at 60 per cent LTV, which saw the average rate gain 1 basis point to finish the week at 1.69 per cent.

Three-year fixes

There was a significant move here at 60 per cent LTV, where the average rate shed 15 basis points, moving from 2.35 per cent to 2.20 per cent.

The next biggest changes occurred at 90 per cent LTV and 85 per cent LTV, which both gained 3 basis points to land at 3.55 per cent and 3.05 per cent, respectively.

Meanwhile, at 80 per cent LTV the average rate gained 2 basis points, coming to 2.82 per cent and, at 75 per cent LTV, the average rate shed 2 basis points to end at 2.30 per cent.

Five-year fixes

The biggest change within this fix took place at 90 per cent LTV, where the average rate dropped 2 basis points, moving from 3.74 per cent to 3.72 per cent.

Elsewhere, moves were limited to 1 basis point in either direction.

10-year fixes

The only movement here was at 75 per cent LTV, which saw its average rate gain a single basis point to end the week at 2.76 per cent.

Moneyfacts finance expert Eleanor Williams says: “Amongst a number of withdrawals and updates to criteria such as incentives, we have seen some noteworthy repricing this week from brands such as Halifax, which cut selected deals by up to 0.44 per cent and HSBC, which reduced various products by up to 0.40 per cent.

“Both Virgin Money and first direct also made rate reductions of up to 0.20 per cent, while Coventry Building Society increased selected fixed rates by up to 0.40 per cent and Ulster Bank made both rate cuts of up to 0.36 per cent and increases of up to 0.66 per cent.

“There has also been further movement at 90 per cent LTV as providers such as Skipton Building Society returning options and others such as Halifax and HSBC updating products in this lending tier.

“Lloyds Bank also refreshed its 90 per cent deals and opened up products to second-time buyers as well as first-time buyers, which is good news for those hoping to make their next move on the property ladder with a lower level of deposit.

“The market does remain changeable though, and processing times may be subject to delays, therefore those hoping to progress a new mortgage application would be wise to gain the advice and support of a qualified professional in navigating the process.”


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