More than twenty lenders made fixed rate increases this week, including some of the biggest brands.
As Moneyfacts finance expert Rachel Springall points there were also a few deals disappearing from the market, including deals priced below 5% – an echo of last week’s movements.
As a result, both the overall average two- and five-year fixed mortgage rates rose for a consecutive week, albeit by a higher margin, by 0.06% week-on-week.
The prominent brands to amend fixed rates this week included Santander by up to 0.26%, Halifax by up to 0.20%, Virgin Money by up to 0.20%, NatWest and RBS by up to 0.22%.
Building societies made a few rate moves this week, those to increase fixed rates included Nationwide Building Society by up to 0.25%, Yorkshire Building Society by up to 0.40%, Mansfield Building Society by up to 0.30%, Cumberland Building Society by up to 0.25%,
Furness Building Society by up to 0.21%, Darlington Building Society by up to 0.20%, Scottish Building Society by up to 0.20%, Darlington Building Society by up to 0.20%, Coventry Building Society by up to 0.10% and Leeds Building Society by up to 0.10%. In contrast, Skipton Building Society reduced selected fixed rates by up to 0.17%.
There were also a number of mutuals withdrawing selected fixed rate products this week including, Hanley Economic Building Society’s 5.49% two-year, Loughborough Building Society’s selected two–year deals, including a deal priced at 4.99%.
Furness Building Society selected two- and five-year deals, West Brom Building Society selected two, three and five-year fixed deals, Leek Building Society selected two- and five-year deals and Tipton & Coseley Building Society selected three-year deals.
Not to go unnoticed, more lenders moved to increase selected fixed rates, such as Perenna by up to 0.68%, MPowered Mortgages by up to 0.60%, Vida Homeloans by up to 0.50%, Accord Mortgages by up to 0.40%, Clydesdale Bank by up to 0.35%, Digital Mortgages by Atom Bank by up to 0.15% and Gen H by up to 0.17%.
Springall stresses that some eye-catching deals also surfaced this week, including a two-year fixed rate deal from Nationwide Building Society, priced at 5.04% and available at 85% loan-to-value for house purchase customers, it charges a product fee of £999 and carries a free valuation incentive, overall, it’s an attractive choice for borrowers with a 15% deposit.
“In response to rising swap rates and a general expectation across the market that interest rates will remain higher for longer, over twenty lenders increased selected fixed rate mortgages this week. Mortgage deals are also being withdrawn from the market, some of which were priced below 5%.
She adds: “The next Bank of England base rate decision looms, but economists don’t expect a change until the summer. Amidst this activity, there are lenders still pushing out enticing packages, including those aimed at buyers with small deposits.”
