Fixed-rate mortgages rose in price again this week as lenders continued to reprice their prices, according to the latest interest rate monitor from Moneyfacts.
The typical two-year fixed rate for residential properties is now 5.35%. an increase of 25 bps in a weekwhile the average interest rate over five years is 5.39%, an increase of 20 basis points.
The two- and five-year swap rates, which form the basis for fixed mortgage prices, have now risen by approximately a full percentage point, reaching the highest level in more than a year.
Adam French, head of consumer finance at Moneyfacts, said: “A large number have increased fixed rates, including major retailers such as Barclays, NatWest, Nationwide and Santander, while others such as Coventry Building Society and Virgin Money have also introduced notable increases.
“At the same time, many lenders have withdrawn products or relaunched ranges at higher rates as they respond to changing market conditions. Atom Bank and Bank of Ireland have both replaced their ranges, while several building societies, including Skipton, Bath, Hinckley & Rugby and Melton, have withdrawn fixed deals. Lenders need to respond quickly to the volatility of funding costs.”
Striking changes in course this week
Atomic bank – Range withdrawn and replaced
Bank of Ireland Intermediaries – Range withdrawn and replaced
Bank of Ireland, UK – Range withdrawn and replaced
Barclays Mortgage – Selected fixed rates increased by maximum 15bps
Bath construction association – Selected fixed rates withdrawn
Bluestone Mortgages – Fixed rates increased by a maximum 30bps
Chorley Building Society – Fixed rates withdrawn
Clydesdale Bank – Selected broker and professional fixed rates withdrawn
Coventry Building Society – Fixed rates increased by a maximum 30bps
Darlington Building Society – Fixed rates withdrawn
Dudley Building Association – Selected fixed rates increased by maximum 45bps and end dates extended
Foundation – Fixed rates increased by a maximum 25bps
Furness Building Society – Selected fixed rates increased by maximum 31bps
Furness Building Society – Selected fixed rates withdrawn
Halifax Fixed rates increased by maximum 15bps
Harpenden Construction Association – Return percentage reduced by 15bps
Hinckley & Rugby Building Society – Fixed rates withdrawn
Hodge – Fixed rates increased by a maximum 48bps
Leeds Building Society – Fixed rates increased by a maximum 30bps. Selected flat rates withdrawn
Leek building association – Selected fixed rates increased by 15bps
Lloydsbank – Selected fixed rates increased by maximum 15bps
Mansfield Building Society – Selected fixed rates increased by 25bps
Melton Building Society – Selected fixed rates withdrawn
NatWest – Fixed rates increased by a maximum 35bps
NatWest Int. Sols – Fixed rates increased by a maximum 35bps
National Construction Association – Selected fixed rates increased by maximum 35bps
Newcastle Building Society – Fixed rates now increased to 35bps. Selected flat rates withdrawn
Pepper Money – Selected flat rate withdrawn. New fixed rates launched
Perenna – New fixed rates launched
Accurate – Selected fixed and variable rates withdrawn
Progressive construction company – Select variable and fixed rates withdrawn. Selected variable rates increased by 30bps or reduced by 9bps. Selected fixed rates increased by maximum 50bps
Royal Bank of Scotland – Fixed rates increased by a maximum 35bps
Santander – Variable rates increased by 35 fps. Fixed rates increased by maximum 35bps. Subsequently, the mortgage range increased 30bps
Scottish Building Association – Selected fixed rates withdrawn
Skipton Building Society – Mortgage offer withdrawn
Suffolk Building Society – Fixed rates increased by a maximum 19bps and end dates extended
The Cooperative Bank for Ints – Fixed rates increased by 30bps
The mortgage lender – Selected fixed rates increased by maximum 35bps
Together – Fixed rates increased by a maximum 50bps
United Trust Bank – Selected fixed and variable rates withdrawn. Fixed and variable rates increased by 20bps
Vernon Building Society – Selected fixed rates withdrawn
Vida Home Loans – fixed rates increased by a maximum 25bps
Virgin money – Fixed rates increased by a maximum 35bps