Fixed rate mortgage prices continued to rise this week, according to the latest Moneyfacts Rate Watch.
The typical two-year interest rate rose 1 basis point to 4.86%, while the average five-year interest rate rose 3 basis points to 4.96%, Moneyfacts found.
Last week was the typical two-year fix priced at 4.85% and the average five-year interest rate fixation of 4.93%.
However, the underlying picture regarding mortgage prices is more complex, with interest rate increases by the major banks being offset by cuts by mortgage banks.
The largest interest rate increases occurred for interest rates with a ten-year term up to an LTV of 50%, with the average price rising by 15 basis points to 4.65%.
Other mortgage categories that saw big price increases included a two-year fixation on a 60% LTV, with an average increase of 5 basis points to 4.26%.
The mortgage type with the biggest interest rate cuts this week was a five-year fix at 100% LTV, which fell by an average of 7 basis points to 5.48%.
Moneyfacts finance expert Rachel Springall said: “Fixed rate increases dominated the mortgage market this week, especially among the biggest high street banks including Barclays, HSBC, NatWest and Santander. It’s not all bad news though, as there were still some significant cuts made by building societies and some new higher loan-to-value deals entering the arena.
“Lenders have been playing catch-up in passing on the increases in response to the uncertain swap rates of a few weeks ago. However, short-term swaps appear to be heading back down, while longer-term swaps are not quite following the same path. These moves could trigger a reversal in pricing between different mortgage terms in the coming weeks.”
Notable changes in mortgage interest rates
• Bank of Ireland Intermediaries – Fixed interest rates increased by up to 23 basis points and reduced by up to 4 basis points
• Bank of Ireland UK – Fixed interest rates increased by up to 23 basis points
• Barclays Mortgage – Fixed interest rate increased by up to 15 basis points
• Bath Building Society – Fixed rates reduced by 10bps and 5bps
• Buckinghamshire Building Society – Fixed rates reduced by up to 16 basis points
• Clydesdale Bank – Fixed interest rate increased by up to 22 basis points
• Coventry Building Society – Fixed rates reduced by up to 10 basis points
• Cumberland Building Society – Fixed rate increased by 5 basis points
• Danske Bank – Fixed interest rates increased by up to 12 basis points
• Darlington Building Society – Fixed rates reduced by up to 20 basis points
• Dudley Building Society – Fixed rates reduced by up to 71 basis points
• Gen H – Fixed rates increased by up to 15 basis points
• HSBC – Fixed rates increased by up to 20 basis points
• Metro Bank – Fixed interest rate reduced by up to 60 basis points
• Nationwide Building Society – Fixed rates increased by up to 19 basis points
• NatWest – Fixed rates increased by up to 24 basis points
• NatWest Intermediary Solutions – Fixed rates increased by up to 24 basis points
• Nottingham Building Society – Fixed RIO rates increased by 10 basis points
• Principality Building Society – Fixed rates increased by up to 13 basis points
• Royal Bank of Scotland – Fixed interest rate increased by up to 24 basis points
• Santander – Fixed interest rates increased by up to 7 basis points
• Skipton Building Society – Fixed rates reduced by up to 12 basis points; Fixed interest rates with delayed start increased by 6 basis points and decreased by 3 basis points
• Tipton & Coseley Building Society – Fixed rates reduced by up to 25 basis points
• TSB – Fixed rates increased by a maximum of 10 basis points or decreased by 5 basis points
• Virgin Money – Fixed interest rate increased by a maximum of 15 basis points (purchase) and 14 basis points (refinancing)