Homedirect loanWeekly rate watch: Prices climb sharply

Weekly rate watch: Prices climb sharply

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The average rate across all major fixes climbed markedly this week, according to data from Moneyfacts.

The average rate for a two-year fix rose by 14 basis points to 3.44%, while the average rate for a three-year fix jumped by 33 basis points to 3.72%.

Over longer terms, the average rate for a five-year fix climbed by 16 basis points to 3.57%, while the average rate for a 10-year fix lifted by 18 basis points to 3.69%.

Two-year fixes

The biggest rises at this level saw the 50% loan-to-value average rate jump by 24 basis points to 3.45%, while the 95% and the 70% LTV average rate both climbed by 18 basis points to 3.69% and 3.61%, respectively.

The 90% LTV rate lifted by 16 basis points to 3.47% and the 85% LTV average rate was 15 basis points higher at 3.46%.

Three-year fixes

The largest gains at this level saw the 65% LTV average rate jump by 52 basis points to 5.13%, while the 70% LTV climbed by 50 basis points to 4.01%.

The 95% LTV rate rose by 15 basis points to 3.56% and the 90% LTV average rate lifted by 31 basis points to 3.57%.

Five-year fixes

The biggest rises at this level saw both the 85% LTV average rate and the 80% LTV average rate climb by 17 basis points to 3.58% and 3.64%, respectively.

The 95% LTV average rate rose by 15 basis points to 3.73% and the 90% LTV average rate was 16 basis points higher at 3.55%.

10-year fixes

The biggest rises at this level saw the 50% LTV average rate jump 40 basis points to 3.59%, while the 80% LTV average rate climbed by 26 basis points to 3.46%.

The 95% LTV average rate lifted 20 basis points to 4.49%, while the 90% LTV average rate was unchanged at 4.23%.

Moneyfacts finance expert Eleanor Williams says: “Continuing the theme of recent weeks, rate rises remain the predominant trend in the residential sector as we see the average rates continue to climb.

Generation Home kicked off the week with significant increases of 94 basis points across its entire mortgage range, while Cumberland Building Society included some notable rises of up to 87 basis points on selected fixed deals in its update, and Hinckley and Rugby Building Society increased some two-year fixed rates by up to 81 basis points and launched some new five-year fixed rate deals.

From the big brands, we recorded changes from TSB who amended ten-year fixed rates with rises of up to 60 basis points, and also returned a number of five-year fixed options with no fee for those purchasing to its range. HSBC applied rises of between 45 basis points and 50 basis points to all fixed deals, and the NatWest group made increases of up to 27 basis points across the majority of its fixed products. Additionally, Halifax has made relatively small rate rises to its fixed rates for house purchases of 10 basis points this week.

From the mutuals, we saw Skipton Building Society put up a couple of its fixed rates for new build properties by up to 41 basis points. Nationwide increased fixed rates by up to 40 basis points, as did Yorkshire Building Society, and Coventry Building Society put up rates across its mortgage range by 40 basis points as well.

Leeds Building Society applied rate rises of up to 36 basis points across a selection of its core products, as well as various interest-only and retirement interest-only deals, and they also introduced a couple of new deals to market.

Virgin Money has increased its fixed-rate deals with no fee by 20 basis points as well as withdrawing a few of its intermediary-only deals. Other lenders to pull products from sale this week included Hodge withdrawing its range, Vernon Building Society who removed all fixed-rate products, as did Suffolk Building Society (except for its fixed-rate RIO deals), and Bespoke by Bank of Ireland UK pulled its fixed rates with selected incentives attached.

In addition, The Co-operative Bank and Platform withdrew some of its fixed rates which carried either a £999 or £1,499 fee (with the exception of professional options) and Cumberland Building Society withdrew its fixed mortgages with a £999 fee.

As a consequence of these withdrawal updates, and despite a few product launches from lenders, availability in the residential sector has dipped noticeably, so it will be interesting to see how providers now react to another rate rise from the Bank of England and in the face of ongoing economic uncertainty.”

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