Average fixed-rate mortgages fell again this week, according to Moneyfacts’ latest rate watch.
The two-year average is now 5.62%, down 3bps from 5.65% last week. The five-year standard deviation is now less than 2bps, at 5.59%.
Moneyfacts head of consumer finance Adam French said: “Unlike recent weeks, some of the big cuts have been to benefit less risky borrowers.
“The two-year fixed rate 60% loan rate decreased by 8bps from 5.15% to 5.07%, while the five-year rate decreased by 4bps from 5.28% to 5.24%.
“While it’s promising news for mortgage customers, those coming out of the cheap five-year deals that were issued back in 2021 are still set for a shock. Based on a £250,000 loan over 25 years, the average borrower getting a two-year fixed rate at 60% LTV will now pay around £4 per month (£4 less per month per year) than they would per week. the past.”
Significant fixed rate and price changes
- AIB (NI) – Fixed rates cut by up to 16bps, with a smaller number rising by 2bps; deadlines have been extended.
- Accord Mortgages – Selected fixed rates reduced by up to 46bps or increased by up to 10bps; tracker rates are reduced by up to 21bps.
- Atom Bank – Fixed rates near Prime reduced by 10bps; deadlines have been extended.
- Buckinghamshire Building Society – RIO and fixed retirement rates reduced by 6bps.
- Coventry Building Society – Selected rates reduced by up to 20bps.
- Gatehouse Bank – Selected fixed rates reduced by 10bps.
- Gen H – Select five-year rate increased by 15bps.
- HSBC – Selected fixed rates cut by up to 11bps; tracker rates are reduced up to 8bps.
- Halifax – Selected fixed rates reduced by up to 10bps.
- Kensington – Selected default rates are slightly reduced; rates of return to the tracker increased by 15bps.
- Leeds Building Society – Selected fixed rates cut by up to 5bps; deadlines have been extended.
- Leek Building Society – Selected rates increased by up to 10bps; deadlines have been extended.
- Lloyds Bank – Mixed changes, with selected fixed rates cut by up to 10bps or raised by up to 5bps.
- Marsden Building Society – Select and discounted variable rates have seen mixed changes; extended deadlines.
- NatWest – Selected fixed rates cut by up to 11bps; revised maximum loan sizes.
- NatWest Intermediary Solutions – Selected fixed rates reduced by up to 10bps.
- Direct Loans – Fixed rates are reduced by up to 35bps.
- Principality Building Society – Selected fixed rates reduced by up to 10bps.
- Sustainable Building Society – Fixed rates reduced by up to 40bps; Discounted variable rates saw mixed movements.
- Royal Bank of Scotland – Selected fixed rates reduced by up to 10bps; revised maximum loan sizes.
- TSB – Selected default rates are reduced by up to 25bps.
- Yorkshire Building Society – Fixed rates reduced by up to 15bps; tracker rates were cut by 9bps.
- Virgin Money – Extended expiry dates across the range.
Significant product launches, withdrawals and range changes
- Accord Mortgages – Fixed remortgage rates waived. New fixed remortgage and tracker products introduced.
- Buckinghamshire Building Society – Selected discounted rates and fixed rates withdrawn.
- Cambridge Building Society – New prime, interest only and First Step rates introduced, including 98% LTV product.
- Gen H – £499 fixed rate product discontinued and not replaced.
- Kensington – The Selective Rating has been withdrawn and the range is being rescheduled. New Khetha Special fixed rates for five years have been introduced.
- Leeds Building Society – Selected FTB, Reach and Income Plus products withdrawn.
- Lloyds Bank – Club Lloyds fixed rate and tracker products have been withdrawn.
- Marsden Building Society – A new discount rate has been introduced.
- NatWest – High fixed rate withdrawn.
- Progressive Building Society – New three-year purchase rates introduced; extended renewal products from two to three years.
- Royal Bank of Scotland – Fixed Value Remortgage rate withdrawn.
- Vernon Building Society – Discounted variable rates withdrawn and replaced
