According to Moneyfacts, average fixed rate mortgages fell again this week, despite lenders starting the week slowly.
The average two-year fix fell by 5 basis points to 5.68% compared to last weekwith the typical five-year deal falling by 3 basis points to 5.63%, according to the latest interest rate monitor from Moneyfacts.
At higher loan-to-value levels, the average two-year fixed rate at 95% LTV fell week-on-week from 6.3% to 6.22%, while at 90% LTV the rate fell from 6% to 5.94%.
The biggest declines were in the 10-year fixes to 100% LTV, which fell 25 basis points to a typical 6.65%, and the two-year fixes to 70% LTV, which fell 19 basis points to an average of 5.29%.
Financial expert Rachel Springall from Moneyfacts said: “Despite a slow start to the week for mortgage rate activity following the bank holiday weekend, more than a dozen lenders have still cut fixed rates.
“Swap rates are lower than a month ago, with fixed rates on average falling further from their April peaks. It has now been more than three months since the turmoil in the Middle East began to cause chaos in the mortgage market, so borrowers will be hoping for more stability in the coming weeks.
“However, as has recently emerged, markets need firm plans on the reopening of the Strait of Hormuz and what that will mean for future interest rate expectations. Until then, they will remain skeptical. Even if the Strait is reopened and global tensions ease, rising costs of living are still expected to rise for British households this year.”
Fixed rate movements
- Mortgages April: reduced by a maximum of 25bps
- Bank of Ireland (intermediaries): reduced by up to 53bps
- Bank of Ireland UK: reduced by a maximum of 10bps
- Barclays Mortgage: reduced by a maximum of 43bps
- Coventry Building Society: reduced by a maximum of 16bps
- Generation H: reduced by a maximum of 30bps
- Kensington: reduced by a maximum of 15 basis points and increased by a maximum of 1 basis point
- Leek growing association: reduced by a maximum of 20bps
- LiveMore Capital: reduced by a maximum of 10bps
- NatWest: reduced by up to 21bps
- NatWest intermediate solutions: reduced by up to 21bps
- Perenna: increased by up to 66bps
- Royal Bank of Scotland: reduced by up to 21bps
- Skipton Building Association: reduced by a maximum of 29 basis points and increased by a maximum of 1 basis point
- Vida home loans: reduced by a maximum of 10bps
Non-tariff changes
- Accord Mortgages: end dates extended across the entire range
- Bank of Ireland (intermediaries): new fixed interest rates of 90% LTV launched; selected end dates extended
- Bank of Ireland UK: new fixed interest rates of 90% LTV launched; selected end dates extended
- Hanley Economic Construction Company: variable and interest-only variable products with a discount withdrawn and replaced by a new range
- Kensington: selected Residential Select fixed products withdrawn
- Saffron Farming Association: new contractor, self-employed, premium income and professional permanent ranges launched
- Skipton Building Association: end dates extended; new fixed series for delayed start, purchase and renewal mortgage launched
- Tipton & Coseley Building Society: Variable product with Family Assist discount withdrawn