This week, the number of rate increases to selected fixed rates vastly overtook those lenders making cuts, in addition there were also a handful of withdrawals. As a result, both the average two- and five-year fixed mortgage rates rose by 0.03% week-on-week.
As Moneyfacts spokesperson Caitlyn Eastell points out among the most prominent lenders to make rate increases includes TSB and Lloyds Bank who both increased by 0.20%, Virgin Money increased by 0.10% alongside launching a new ‘intermediary exclusive’ which is fixed for five years, and finally HSBC which increased by up to 0.26%.
Building societies made a wide range of changes across their products this week, those to increase fixed rates are Monmouthshire Building Society, Leeds Building Society all by 0.10%, Skipton Building Society increased by up to 0.13%, Leek Building Society increased by 0.05%, Principality Building Society increased by up to 0.27%.
In contrast, those to reduce includes Skipton Building Society by 0.10%, Principality Building Society by 0.07%, and Melton Building Society and Buckinghamshire Building Society who made a variety of rate reductions to their range.
Not to go unnoticed, a number of providers also withdrew their fixed rate products, those of which include West Brom Building Society, Scottish Building Society, Saffron Building Society, Leeds Building Society, Vernon Building Society, Cambridge Building Society, Melton Building Society, Virgin Money, Foundation Home Loans and Kensington.
Eastell picks out some eye-catching deals which entered the market this week, including a two-year fixed rate deal from Leeds Building Society, priced at 5.15% and available at 75% loan-to-value for all borrowers, it does not charge any product fees and carries a free valuation fee for all and in addition help towards costs for those customers remortgaging, overall this may be an attractive option for those looking to save on the upfront cost of their mortgage.
“It may be discouraging that many providers are deciding to increase their rates, but this may be expected in response to swap rates and the recent General Election announcement which could impact interest rates. Amidst this there are still some lenders that are reducing rates and offering enticing new deals.”
