Weekly rate monitor: two-year patches incur higher fees


Fixed-rate prices rose in the week through last Friday, according to data from Moneyfacts, with the two-year average rate climbing to a high of 30 basis points to 4.53%.

The average rate for a 10-year fixed rate was not too far behind, rising 27 basis points to 4.62%, while the average rate for a five-year fixed rate rose 18 basis points, at 4.54%.

Three-year fixed prices rose 5 basis points to 4.83%.

Two-year corrections

The most significant changes here last week were in the 60% LTV average rate, which jumped 32 basis points to 4.24%, followed by the 80% LTV average rate rising 26 basis points to 4 .59%.

The average LTV 90% rate increased by 14 basis points to 4.32%, while the average LTV 90% and LTV 85% rates both increased by 12 basis points, both reaching 4 .56%.

Three-year corrections

The largest increase at this level occurred in the 95% LTV average rate, up 17 basis points to 4.68%, with the 90% LTV average rate coming next up 9 basis points, to 4. 74,

However, the average 95% LTV rate fell by 22 basis points to 5.27%, while the average 75% LTV rate increased slightly by 1 basis point to 4.80%.

Five-year corrections

The largest increase at this level was in the 50% LTV mid-rate, up 38 basis points to 4.50%, followed by the 80% LTV mid-rate, which rose 22 basis points to 4.65% .

The average 95% LTV rate increased by 8 basis points to 4.68 and the average 90% LTV rate jumped by 16 basis points to 4.46%. Fixed average rates at 100% LTV remained unchanged at 4.25%.

10 year fixes

The most significant changes here were in the 65% LTV average rate, which jumped 61 basis points to 6.63%, followed by the 95% LTV average rate, which rose 39 basis points to 5 .09%.

The 95% LTV average rate rose 28 basis points to 5.48%, while the 60% LTV average rate jumped 36 basis points to 4.71%.

Moneyfacts expert Eleanor Williams said: “The product changes and rate updates processed in the residential mortgage industry last week were largely a continuation of recent themes, albeit with a small increase. the number of products that slightly improve availability for potential borrowers.

While there are still product withdrawals in the industry, we have also seen The Co-operative Bank and Platform add new offerings to their respective ranges, and Coventry Building Society has launched fixed three-year offerings.

“NatWest Group has made various updates to its brands, some of which have refreshed ‘Online Exclusive’ offerings, while NatWest Intermediary Solutions has added new variable tracking options. Elsewhere, Marsden Building Society has added a new retirement interest-only product and a new fixed rate to its ‘older borrowers’ lineup.

Average fixed rates continue to rise, with some sizeable increases by a number of big brands fueling further upside. TSB raised rates across its range by 80 basis points and NatWest Group increased by almost as much, with some transactions rising as much as 79 basis points.

Halifax and Lloyds Bank made some updates last week which saw buy and mortgage transactions increase by up to 50 basis points, moves which were echoed at Nationwide and also Newcastle Building Society where fixed rates also increased by as much as 50 basis points.

“Barclays Mortgages has raised rates by up to 44 basis points and has also changed the cashback incentive amounts on some of its fixed rate offerings for mortgage borrowers.

Standard variable rate and return rate changes are also still being processed, with the last week seeing rate increases applied to providers’ respective trailing rates including Virgin Money, Yorkshire Bank, Metro Bank and also a few mutuals , including Nottingham Building Society and the Newbury Building Society.

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