Weekly rate watch: Increases again at most fixes | Mortgage Strategy

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This week, rates grew at all fixes except for the three-year, shows data from Moneyfacts.

Specifically, the average two-year rate increased, going from 2.29 per cent to 2.33 per cent, the average three-year rate fell from 2.54 per cent to 2.49 per cent, and the average five-year rate grew from 2.55 per cent to 2.58 per cent.

Meanwhile, the average 10-year rate nudged up slightly, from 2.69 per cent to 2.70 per cent.

Two-year fixes

The biggest rise here was seen at 50 per cent LTV, where the rate grew from 2.23 per cent to 2.33 per cent.

At 65 per cent LTV, the average rate rose 8 basis points, from 1.91 per cent to 1.99 per cent.

Increases at 85 per cent LTV and 80 per cent LTV were hot on the heels of the above, rising 7 basis points apiece – to 2.80 per cent and 2.52 per cent, respectively.

Rates nudged up by up to 0.02 per cent elsewhere, although at 95 per cent LTV and 90 per cent LTV, the average two-year rates were static during the week.

Three-year fixes

Here, the biggest change was at 60 per cent LTV. The average rate shrank by 10 basis points – going from 2.34 per cent to 2.24 per cent.

At 75 per cent LTV too the average fell – from 2.38 per cent to 2.33 per cent.

Gentle rises and falls occurred elsewhere within a maximum range of 0.02 per cent.

Five-year fixes

At 50 per cent LTV the average rate increased from 2.63 per cent to 2.79 per cent.

The second most significant change occurred at 65 per cent LTV, which saw its average rate increase from 2.18 per cent to 2.28 per cent.

Gains were spotted at 85 per cent LTV too, with the average rate going from 2.93 per cent to 2.99 per cent, followed closely by the change at 90 per cent LTV, which saw its average rate increase from 3.69 per cent to 3.74 per cent.

10-year fixes

Just two changes happened here – and both a 2 basis point increase.

At 75 per cent LTV the average rate increased from 2.56 per cent to 2.58 per cent and at 65 per cent LTV, a change from 2.46 per cent to 2.48 per cent took place.

Moneyfacts financial expert Eleanor Williams comments: “Prospective mortgage borrowers may be disappointed to see further increase to the average rates this week, as product choice continues to dwindle in the residential mortgage sector.

“A number of lenders have reviewed their ranges this week; Skipton Building Society, HSBC and Santander all made changes which included rate increases of varying amounts.

“Halifax has made a raft of changes including selected withdrawals, some house purchase deals being increased by up to 0.30 per cent (or 0.57 per cent for two-year fixed rates between 75 per cent and 80 per cent LTV via selected intermediaries) and selected remortgage deals receiving either increases or reductions of up to 0.35 per cent. Lloyds Bank also made both rate reductions and increases to certain products of up to 0.16 per cent or 0.30 per cent, respectively.

“Some positivity for those looking at the higher end of the LTV spectrum has come from TSB, which launched a new 85 per cent LTV mortgage for those purchasing, as have Barclays Bank, which as well as releasing new products, also bucked the trend and made a number of rate reductions across its range of up to 0.27 per cent.

“Lender updates continue with great regularity at the moment, so those hoping to secure a new mortgage deal may need to move swiftly, as there is no guarantee how long any deal will remain live.”


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