Despite an interest rate cut by the Bank of England last week, fixed rate increases remain the main trend.
And as Moneyfacts spokesperson Caitlyn Eastell points out, many of the biggest lenders have changed their offering, meaning deals under 4% are no longer available outside Northern Ireland.
Week-on-week, the average two- and five-year interest rate rose by 0.08% to 5.50% and 5.22% respectively.
The prominent brands that have increased selected fixed interest rates this week include Virgin Money by up to 0.20%, TSB by up to 0.30%, Royal Bank of Scotland by up to 0.35%, NatWest by up to 0.35% , first directly with a maximum of 0.30%, Barclays Mortgage with a maximum of 0.56%, HSBC with a maximum of 0.20% and Santander with a maximum of 0.29%.
Building societies have also changed some rates this week, including West Brom Building Society by up to 0.25%, Yorkshire Building Society by up to 0.55%, Furness Building Society by up to 0.10% and Buckinghamshire Building Society by up to 0.10%. up to 0.30%, Nationwide Building Society with up to 0.20%, Leek Building Society with up to 0.13%, Leeds Building Society with up to 0.27%, and Vernon Building Society with up to 0.25%.
Not to go unnoticed, a few more lenders increased interest rates, including Kensington by up to 0.20%, Accord Mortgages by up to 0.25% and Pepper Money by up to 0.15%.
Eastell highlighted some notable deals emerging this week, including a five-year fixed rate deal from Virgin Money, priced at 5.14% and available at a 95% loan-to-value for first-time buyers. The deal does not charge any fees. All product costs and what adds to its appeal has an attractive incentive package with a free valuation and £300 cashback.
She added: “It’s not all doom and gloom: a handful of lenders have moved to cut back on a selection of their fixed rate offers, and a number of high-profile offers for new borrowers continue to float around. Average interest rates remain below this year’s peaks, despite many lenders looking to increase their deals. Swap rates are rising due to increases in government bonds as the new labor government secures more financing. So it is likely that lenders will continue to raise their interest rates.
In any case, it is not always a guarantee that the base rate cuts will be passed on to borrowers outside the tracker deals.”