Despite market concerns about rising government bond yields, there was relatively little change in mortgage prices this week.
The cost of the average two- and three-year fixed-rate mortgage has fallen slightly – by 1 and 2 basis points per month respectively, according to Moneyfacts data. However, the figures show that the cost of the average five-year fix has increased marginally, by only 1 basis point.
Across these different fixed rate periods, there were generally increases at the larger LTV bands, with these increasing on average at two-, three- and five-year fixed rates. In contrast, there were often price reductions for lower LTV loans.
A number of major building societies cut certain fixed interest rates, including First Direct and HSBC (with rates falling by 30 basis points and 16 basis points respectively). TSB cut rates by up to 15 basis points, but also raised up to 20 basis points on other selected deals. Meanwhile, Virgin Money made increases of up to 3 basis points on selected five-year fixed deals.
Some of the biggest interest rate cuts came from United Trust Bank, which cut interest rates on its top segment by 70 basis points. There were also bigger rate moves at Accord Mortgages, which cut rates by up to 43 basis points, increased rates by up to 17 basis points and launched a new deal at a loan-to-value ratio of 95%.
Other specialist lenders also cut rates: MPowered Mortgages cut rates by up to 32 basis points, Gen H by up to 22 basis points and Bluestone Mortgages by up to 0.10%.
Building societies also revised prices on mortgage deals this week, with West Brom Building Society cutting rates on selected deals by up to 22 basis points, but increasing other products by up to 20 basis points.
Meanwhile, the Yorkshire Building Society cut rates by up to 27 basis points, but implemented more significant rate increases – by up to 43 basis points. Skipton Building Society reduced rates by up to 11 basis points and increased other rates by up to 23 basis points.
Leeds Building Society increased rates by up to 10 basis points, but also withdrew some of its fixed income products.
However, there were other new deals for agents to consider with West, such as the launch of new deals, as well as the Penrith Building Society, which offered a new two-year fixed deal at an 80% loan-to-value. Kensington also launched a new ‘select special’ mortgage offering with fixed terms of two or five years.
Financial expert Rachel SpringallSpringall from Moneyfacts says: “A number of notable deals came to light this week, including a two-year fixed rate remortgage deal from Yorkshire Building Society, priced at 5.25% and available at a loan-to-value value of 90%. includes a free valuation, free legal fees, £250 cashback and charges a £495 product fee.”