According to the latest interest rate monitor from Moneyfacts, average prices with a fixed interest rate have fallen slightly this week.
Moneyfacts found that the typical two-year interest rate fell by 2 basis points to 4.85%, while the average five-year interest rate fell by 2 basis points to 4.89%.
The largest reductions, of 6 basis points, took place in the ten-year interest rate fix to an LTV of 75%, with the usual rate now being 5.61%.
Last week the typical price for a two-year fix was 4.85%, 1bps lower than the week beforewhile the average five-year fixed rate remained unchanged at 4.97%.
More cuts are likely in the near future, according to financial expert Rachel Springall of Moneyfacts.
Springall said: “Around a dozen lenders have made fixed rate cuts this week, and few have passed on any particular increases.
“The path of fixed rates is trending more towards reductions due to recent moves in swap rates. Right now, swap rates are at 30-day lows, so really this should be a signal for lenders to review their bandwidth in the coming weeks.
“We could also see reductions if lenders decide to pre-price a base rate cut on fixed deals, ahead of the next decision.
“While not an absolute certainty for a 25 basis point cut, many economists recently surveyed believe the Bank of England MPC will vote by a majority to cut BBR in March. At the same time, we could also see lenders competing on price to entice Spring buyers, and house prices are poised to rise according to Zoopla, so the mortgage market is looking bright.”
Striking changes in course this week
- Agree Mortgages – Fixed rates reduced by maximum 24bps or increased by maximum 19bps
- Chorley Building Society – Fixed rates withdrawn
- Coventry Building Society – Fixed rates reduced by maximum 5bps; specific 31.7.31 products reduced by 4bps
- Kensington Mortgages – Fixed rates reduced by maximum 103bps; fixed rates reduced by maximum 108bps; specific 5-year products reduced by 7bps And 5bps
- Leek building association – Fixed rates increased by 5bps; Own New fixed rates withdrawn
- Lloyd’s Bank – New fixed interest rate launched (no BPS change stated)
- Melton Building Society – Fixed rate product made available through intermediaries (no BPS change stated)
- NatWest – Fixed rates reduced by maximum 20bps
- NatWest Intermediate solutions – Fixed rates reduced by maximum 20bps
- Newbury Building Society – Fixed rates reduced by maximum 20bps
- Newcastle Building Society – No fixed price change (only end dates extended)
- Nottingham Building Society – Fixed rates reduced by 5bps (95% LTV only)
- Royal Bank of Scotland – Fixed rates reduced by maximum 20bps
- Saffron Farming Association – Fixed rates reduced by 110bps
- Skipton Building Society – Fixed rates reduced by maximum 9bps or increased by maximum 7bps
- Tipton & Coseley Building Society – Fixed rates reduced by maximum 20bps
- TSB bank – Fixed rates reduced by 5bps or 10bps
- Yorkshire Building Society – Fixed rates reduced by maximum 28bps; specific product reduced by 63bps