There were more rate increases this week, among the rate cuts, with some lenders withdrawing certain deals from their range.
As Moneyfacts finance expert Rachel Springall points out there were also a couple of lenders launching deals at 90% LTV, such as with LendInvest and Virgin Money, great news for borrowers with smaller deposits or equity. These movements resulted in average two- and five-year fixed rates rising week-on-week, with different rate fluctuations within the underlining LTV brackets.
“The prominent brands to amend fixed rates this week included Santander which reduced rates by up to 0.16%, following up on cuts made last week. Lenders to make rate increases included NatWest and RBS by up to 0.21%, TSB by up to 0.10% and Virgin Money by up to 0.39%.
“Building Society activity was busier than last week, those to make increases included Nationwide Building Society by up to 0.25%, Leeds Building Society by up to 0.07%, Coventry Building Society by up to 0.21%, Cumberland Building Society by up to 0.26%, Monmouthshire Building Society by up to 0.10% but also reduced by 0.30%. In addition, some mutuals cut rates, including Loughborough Building Society by up to 0.30% (family deposit deals), Scottish Building Society by up to 0.35% (professional deals), Melton Building Society by up to 0.34% (prime deals) and Progressive Building Society by up to 0.48%”.
Not to go unnoticed, Springall namechecked Clydesdale Bank which reduced selected 95% LTV rates by up to 0.35% but also increased rates by up to 0.20%, Yorkshire Bank reduced selected rates at 95% LTV by 0.30% but also increased by up to 0.05%. Other lenders to make increases included Digital Mortgages by Atom Bank by up to 0.35%, Accord Mortgages by up to 0.33% and Gen H by up to 0.15%.
“Some eye-catching deals also surfaced this week, including a five-year fixed deal from Cumberland Building Society, priced at 4.28% and available at 75% loan-to-value for remortgage customers, it carries a free valuation and free legal fees incentive bundle and charges a £999 product fee.
She added: “The swap rate market has been notably volatile over the past month, and rises are having an impact on fixed rates. The average two-year fixed mortgage rate appears to be rising more than longer-term rates for now, so its possible short-term fixed pricing will remain a key focus for lenders reviewing their margins in the coming weeks. As always, its vital borrowers seek advice of a mortgage broker to review their options.”
