The mortgage market experienced a mix of fixed rate cuts and increases this week, with the latter dominating.
As Moneyfacts finance expert Rachel Springall explains these movements resulted in the average two-year fixed rate rising this week, but interestingly the five-year remained unchanged.
“Along with rate tweaks, a few lenders decided with withdraw some deals within their range, but the market was also enhanced by fresh deals, including a sub 5% five-year fixed rate from Gen H at 80% loan-to-value.
“The prominent brands to increase fixed rates this week included HSBC by up to 0.19%, Barclays Mortgage by up to 0.25%.
She added: “Those lenders to do a mix of cuts and rises included Lloyds Bank reduced by up to 0.51% but also increased by up to 0.36%, Virgin Money reduced by up to 0.25% but also increased by up to 0.23%, Cumberland Building Society reduced by up to 0.15% but also increased by up to 0.05% and LiveMore Capital made a mix of increases and reductions, such as rises on its interest-only rates by up to 0.35%.
Building societies were active again this week, many making fixed rate increases. Those lenders to make increases to selected fixed rates included Principality Building Society by up to 0.34%, Accord Mortgages by up to 0.30%, Leeds Building Society by up to 0.22%, Darlington Building Society by up to 0.20%, Newbury Building Society by up to 0.20%, Furness Building Society by up to 0.15%, Yorkshire Building Society by up to 0.10% and Leek Building Society by up to 0.07%.
A few mutuals also moved to slash fixed rates this week, including Teachers Building Society by up to 0.65%, Vernon Building Society by up to 0.25% and Saffron Building Society by up to 0.60% on its first-time buyer mortgages.
Not to go unnoticed, Clydesdale Bank made increases by up to 0.42% on some professional fixed deals, and on the other side, TSB decided to cut selected fixed rates for house purchase customers at 95% loan-to-value by up to 0.05%.
Some eye-catching deals also surfaced this week, including a five-year fixed deal from TSB, priced at 5.14% and available at 95% loan-to-value for all borrower types. It includes a free valuation and £500 cashback and does not charge a product fee, overall, it’s an attractive choice for those looking to save on the upfront cost of their deal.
Springall pointed out that the two-year fixed rate market had been impacted by rate hikes this week, more so than longer-term deals.
“The volatility within the swap rate market is prevalent, and they are higher than they were a month ago. However, as seen from some fresh deals launched this week, there are some decent cost-saving packages out there for borrowers. As always, its essential for any borrower to seek advice as deals can be withdrawn quickly.”
