Average mortgage interest rate is falling again: Moneyfacts

Moneyfacts found the average solution for two years fell by 2bps to 5.73%, while the typical five-year interest rate fell 1 basis point to 5.66%.

The more significant declines occurred among the higher loan-to-value loans, with the average two-year LTV rate at 90% LTV falling 4 basis points from 6.04% to 6%. The equivalent five-year fixed rate fell by 7 basis points from 5.87% to 5.8%.

Adam French, head of consumer finance at Moneyfacts, said: “Average mortgage rates have moved lower again this week as mainstream lenders continue to compete despite uncertainty around inflation, funding costs and the future direction of the Bank of England’s base rate.

“A total of 27 mortgage lenders made notable changes this week. Ten lenders reduced select rates, 13 increased their prices and nine launched or renewed new products

“The latest changes may also indicate that some lenders are pursuing growth by targeting more niche segments of borrowers rather than broad mainstream repricing.

“The variable regional effects of higher mortgage rates have also become somewhat clearer this week. Higher financing costs are putting much greater pressure on the more expensive housing markets in the south, while lower average property values ​​in the northern regions have softened some of the affordability shock.”

Notable changes this week

• Mortgages in April – Fixed interest rate increased by a maximum of 20 basis points.
• Atom Bank – Fixed interest rate increased by a maximum of 15 basis points.
• Barclays Mortgage – Tracker rates have risen slightly; selected fixed rates reduced by up to 15 basis points.
• Bath Building Society – Selected fixed rates withdrawn.
• Chorley Building Society – New proprietary Rate Reducer product launched with 95% LTV with cashback incentive.
• Darlington Building Society – Selected specialist fixed rates reduced by up to 30 basis points; end dates extended.
• Dudley Building Society – New fixed and interest-only fixed rates launched; discounted variable interest rate reduced by up to 40 basis points.
• Halifax – Select fixed rates reduced by up to 14 basis points; new 98% LTV Low Deposit product launched for first-time buyers.
• Hanley Economic Building Society – Variable and RIO rates discounted up to 64 basis points.
• Leeds Building Society – Fixed rates reduced by up to 36 basis points; new fixed interest rates launched; end dates extended; selected products withdrawn.
• Leek Building Society – Selected fixed rates increased by up to 8 basis points.
• Lloyds Bank – Selected fixed interest rates reduced by up to 14 basis points; new 98% LTV Low Deposit product launched for first-time buyers.
• Melton Building Society – Selected fixed rates increased by up to 14 basis points; end dates extended.
• NatWest – Fixed rates increased by up to 24 basis points; end dates extended.
• NatWest Intermediary Solutions – Fixed rates increased by up to 24 basis points; end dates extended.
• Newcastle Building Society – Selected fixed rates for self-employed increased; end dates extended.
• Nottingham Building Society – Fixed and RIO rates increased by up to 15 basis points; end dates extended.
• Principality Building Society – Mixed changes where selected fixed and tracker rates have increased, while one fixed rate has decreased slightly.
• Royal Bank of Scotland – Fixed interest rate increased by up to 24 basis points; end dates extended.
• Santander – Selected fixed and tracker rates reduced by up to 23 basis points and 27 basis points respectively; selected FTB products withdrawn; end dates extended.
• Skipton Building Society – Selected fixed and delayed start products reduced by up to 19 basis points.
• Suffolk Building Society – All fixed rate mortgages temporarily withdrawn.
• TSB – Selected fixed rates reduced by up to 20bps.
• The Cooperative Bank for Intermediaries – Selected 95% LTV and Green fixed rates increased; selected remortgage fixed rates reduced.
• Tipton & Coseley Building Society – Mortgage range replaced with extensive new fixed and discounted variable products, including RIO, LIR and Credit Plus ranges.
• United Trust Bank – Fixed and tracker rates increased by up to 35 basis points within Prime ranges; 90% LTV products withdrawn.
• West Brom Building Society – Selected fixed rates reduced by up to 32 basis points; new 90% LTV fixed rate launched.