Fixed rate reductions have been the most significant trend in the mortgage market this week, according to moneyfactscompare.co.uk spokesperson James Hyde, with average rates for two and five-year mortgages continuing to fall as a result.
“Prominent brands making selected fixed rates reductions this week included TSB by up to 0.50%, Barclays by 0.20%, and Halifax by up to 0.12%.
“Several other lenders also made substantial cuts; Kensington reducing selected fixed rates by up to 0.85% , and the Co-Operative Bank by up to 0.47% being two noteworthy examples.”
Residential lender MPowered Mortgages reduced rates on its three-year fixed-rate products by up to five basis points.
The lender, which mainly operates in the prime sector, is now offering three-year fixes starting at 5.24% for purchasers at 75% LTV, borrowing more than £200,000. This deal comes with a £1,999 arrangement fee and a £500 cashback offer. The rate rises to 5.34% with a £999 arrangement fee (again at 75% LTV, and with £500 cashback).
Virgin Money made selected cuts across its residential and landlord exclusive ranges, as well as its switcher rates, by up to 26 basis points.
Highlights of the high street lender’s reductions include: 65% LTV two-year fixes reduced by 14bps to 5.20% and 75% LTV two-year fixes reduced by 19%bps to 5.26%.
Other interesting developments saw Newcastle Intermediaries re-enter the two-year 95% LTV market.
The lender says it made the move in light of broker feedback and to support first-time and low deposit borrowers in achieving their homeownership dream.
The refreshed proposition offers a two-year fixed rate at 6.44% (7.1% APRC) up to 95% LTV, available with no product fees, a free standard valuation and £200 cashback. The range also offers a two-year fixed rate at 5.99% (7.1% APRC) up to 95% LTV with a £999 product fee.
