According to Moneyfacts, average fixed-rate mortgage prices fell again this week, helped by major interest rate cuts by mainstream lenders.
The typical two-year fix fell 3 basis points to 5.59%, from 5.62% last weekwhile the average five-year rate fell by 3 basis points to 5.56%.
The mortgage type that saw the largest average reduction this week was a two-year fixation on an LTV of 50%, down 7 basis points to 5.13%.
Prices did not rise for any mortgage type this week, with prices remaining the same or falling.
Adam French, head of consumer finance at Moneyfacts, said: “Many lenders have cut mortgage prices this week as borrowing costs continue to fall following an easing of tensions in the Middle East. inflation rates that are below expectations and the widely expected decision to do so maintain the basic rate.
“Although swap rates rose slightly on Friday morning due to the results of the Makerfield by-election and the renewed prospect of domestic political unrest.
“While several lenders chose to revamp their offerings by retiring older, more expensive products and replacing them with lower-rate offerings, a few major lenders have taken some notable steps.
“Nationwide Building Society reduced selected fixed rates by up to 28 basis points, Barclays reduced selected fixed rates on home purchases by up to 37 basis points and Santander made a mix of cuts, increases and product launches.”
Notable mortgage changes
Rate changes
- Mortgages April – Fixed rates reduced by 10bps.
- Atomic bank – Fixed top rates reduced by 15 basis points.
- Barclays – Selected fixed rates for home purchases reduced by up to 37 basis points.
- Dudley Building Association – Variable interest rates reduced by up to 90 basis points; fixed rates reduced by up to 110 basis points; selected reimbursements increased.
- Home Loan Foundation – Selected fixed rates reduced by up to 25bps.
- Furness Building Society – The variable interest rates have been increased by a maximum of 34 basis points; The fixed interest rate on two-year refinancing was increased by a maximum of 35 basis points.
- Gen H – Selected fixed rates reduced by up to 20bps.
- Kensington Mortgages – Residential Select fixed rates reduced by up to 30bps.
- Leek building association – Selected fixed rates reduced by between 18bps and 30bps.
- National Construction Association – Selected fixed rates reduced by up to 28bps.
- Newcastle Building Society – Tracker rates reduced by 10bps; selected fixed rates reduced by up to 10bps.
- Santander – Selected tracker speeds reduced by up to 18bps; fixed interest rates reduced by up to 15 basis points, although some products increased by 11 basis points; fees and credit limits changed.
- Skipton Building Society – Tracker rates reduced by up to 22bps and selected fixed rates reduced by up to 14bps.
- Vida Home Loans – Selected fixed rates reduced by up to 10bps or increased by 10bps.
- Virgin money – Selected fixed rates reduced by up to 22bps.
- West Brom Building Society – Selected fixed rates reduced by up to 44bps; end dates extended.
- Yorkshire Building Society – Select fixed interest rates have been reduced by up to 27 basis points, although some products have increased by 4 basis points.
Product launches, withdrawals and other changes
- Bank of Ireland Intermediaries – Two fixed interest rate products have been withdrawn.
- Barclays – New offset tracker and Premier tracker launched; Existing Premier tracker revoked.
- Clydesdale – Product end dates extended by one month.
- Furness Building Society – Two-year fixed-rate home purchase withdrawn.
- Gatehouse Bank – Existing range withdrawn and replaced by fixed Limited Edition rates of 5.68% (two years) and 5.63% (five years); Green products launched at an interest rate 10 basis points lower.
- Hanley Economic Construction Company – Variable product with RIO discount withdrawn.
- Hinckley & Rugby Building Society – New variable mortgage with discount launched; new flat rates for Skilled Worker Visa introduced with up to 95% LTV.
- Kensington Mortgages – One five-year Residential Select product has been withdrawn.
- Leeds Building Society – Multiple first-time buyers, second-time buyers and Reach products withdrawn.
- Newcastle Building Society – New tracker products launched from 4.25%; new fixed interest rates launched from 4.80% for two- and five-year terms.
- Santander – End dates extended by one month; new tracker products for new buyers launched from 4.18%; new fixed interest rates launched from 4.55%-5.02% over terms of two, three, five and ten years.
- Scottish Building Association – The credit area is expanded to include the whole of Great Britain.
- Suffolk Building Society – New fixed interest rate range launched of 5.75% for two years and 5.69% for five years.
- West Brom Building Society – New five-year products launched from 5.05%; several existing five-year products have been withdrawn.
- Yorkshire Building Society – Various products with a higher rate have been withdrawn.