Homedirect loanWeekly rate watch: Price rises pick up pace

Weekly rate watch: Price rises pick up pace

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Average fixed rates moved up across the board this week, Moneyfacts data shows, picking up pace from last week’s slower rate.

The average rate for a two-year fix rose by 6 basis points to 3.93%, while the average rate for a three-year fix lifted by 10 basis points to 4.27%.

Over longer terms, the average rate for a five-year fix climbed by 6 basis points to 4.07%, while the average rate for a 10-year fix rose by 11 basis points to 4.19%.

Two-year fixes

The largest gains at this level saw the 70% loan-to-value average rate jump by 11 basis points to 3.91%, while the 95% LTV average rate, the 80% LTV average rate and the 60% LTV average rate all rose by 8 basis points to 4.21%, 3.96% and 3.64%, respectively.

The 90% LTV rate lifted by 7 basis points to 3.98% and the 85% LTV average rate was 2 basis points higher at 3.96%.

Three-year fixes

The biggest rises at this level saw the 95% LTV average rate jump by 16 basis points to 4.12% and the 85% LTV average lift by 11 basis points to 4.38%.

The 90% LTV average rate rose by 8 basis points to 4.07%, and the 80% LTV average rate was 10 basis points higher at 4.26%.

Five-year fixes

The biggest rises at this level saw the 95% LTV average rate and the 80% LTV average both rise by 8 basis points to 4.17% and 4.15%, respectively.

The 90% LTV average rate lifted by 5 basis points to 4.00% and the 85% LTV average rate was 6 basis points higher at 4.11%.

10-year fixes

The largest gains at this level saw the 50% LTV average rate rocket by 33 basis points to 4.34% and the 80% LTV average rate jump by 27 basis points to 4.08%.

Other notable rises saw the 85% LTV average rate lift by 24 basis points to 4.17% and the 90% LTV average rate rise by 19 basis points to 4.77%. 

Moneyfacts finance expert Eleanor Williams says: “In contrast to recent weeks, we recorded a lower level of activity relating to mortgage product changes since Monday, perhaps due to providers waiting for next week’s Bank of England decision on base rate, or perhaps reflecting a seasonal summer slowdown.

The level of product choice in the residential sector dipped slightly again as the number of available deals dropped following further withdrawals this week. This has included updates from Platform and The Co-operative Bank who pulled all fixed rates at 95% LTV as well as a handful of five-year fixed rates, and Vida Homeloans who cut all two-year fixed rates from its range.

Conversely, we have seen a couple of providers relaunch previously withdrawn products, including Hodge who returned retirement interest-only products to its range, and Kensington with Flexi Fixed for Term deals.

Similarly to last week we have processed a couple of lender updates which included rate reductions. TSB not only reintroduced a number of new two-year fixed deals for those purchasing this week, but also cut up to 35 basis points from selected fixed rate deals. Digital Mortgages by Atom Bank also included rate reductions of up to 20 basis points across its Prime range.

However, the main trend continues to be rate rises, fuelling further uplift in the overall averages. From the mutuals, we saw Darlington Building Society apply increases of up to 60 basis points across selected fixed products, and Newcastle Building Society tweaked various deals including offerings for self-employed borrowers, joint borrower sole proprietor products, large loan options and some interest-only deals – increasing these by as much as 60 basis points as well.

Nationwide Building Society made rises on its fixed rates of up to 35 basis points, while Coventry Building Society and West Brom Building Society both put up selected rates by up to 30 basis points.”

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