Fixed rates rise again as major lenders make cuts: Moneyfacts – Mortgage Strategy

The average mortgage rate fell again this week, helped by big rate cuts at traditional lenders, according to Moneyfacts.

The two-year average yield fell 3bps to 5.59%, from 5.62% last week, while the five-year average fell 3bps to 5.56%.

The type of mortgage to see the biggest average reduction this week was the two-year fixed at 50% LTV, down 7bps to 5.13%.

Neither type of mortgage has seen prices rise this week, with prices remaining flat or falling.

Moneyfacts head of consumer finance Adam French said: “Many lenders have cut mortgage rates this week as funding costs continue to ease following the easing of tensions in the Middle East, expected inflation figures and the much-anticipated decision to hold the base rate.”

“However, exchange rates rose slightly on Friday morning following the results of the Makerfield by-election and renewed hopes of an outbreak of domestic political unrest.

“While several lenders have chosen to refresh their brands by withdrawing older, higher-priced products and introducing lower-priced deals, a few major lenders have done something noteworthy.

“The National Building Society has cut selected benchmark rates by up to 28bps, Barclays has cut selected benchmark mortgage rates by up to 37bps and Santander is making a mix of cuts, hikes and product launches.”

Significant mortgage changes

The rate changes

• April Mortgages – Fixed rates reduced by 10bps.
• Atom Bank – Fixed rates reduced by 15bps.
• Barclays – Fixed rates for house purchases are reduced by up to 37bps.
• Dudley Building Society – Reduced variable rates reduced by up to 90bps; fixed rates reduced up to 110bps; selected values ​​increased.
• Foundation Home Loans – Selected default values ​​are reduced up to 25bps.
• Furness Building Society – Discounted variable rates increased to 34bps; two-year fixed-rate mortgages rose to 35bps.
• Gene H – Selected default values ​​are reduced up to 20bps.
• Kensington Mortgages – Residential Select fixed rates reduced by up to 30bps.
• Leek Building Society – Selected default values ​​are reduced between 18bps and 30bps.
• World Construction Association – Selected fixed rates are reduced up to 28bps.
• Newcastle Building Society – Tracker rates reduced by 10bps; selected default rates are reduced by up to 10bps.
• Santander – Selected tracker rates are reduced up to 18bps; fixed rates were reduced by up to 15bps, although some products increased by 11bps; fees and borrowing limits have been amended.
• Skipton Building Society – Tracker rates are reduced by up to 22bps and default selected rates are reduced by up to 14bps.
• Vida Homeloans – Selected default values ​​are reduced up to 10bps or increased by 10bps.
• Girls Money – Selected default values ​​are reduced up to 22bps.
• West Brom Building Society – Selected reduced rates up to 44bps; deadlines have been extended.
• Yorkshire Building Society – Selected fixed rates were reduced by up to 27bps, although some products increased by 4bps.

Product launches, withdrawals and other changes

• Bank of Ireland Intermediaries – Two fixed rate products have been withdrawn.
• Barclays – New offset tracker and Premier tracker introduced; Premier’s existing tracker has been discontinued.
• Clydesdale – Product expiration dates are extended by one month.
• Furness Building Society – The fixed rate for buying a house for two years has been withdrawn.
• Gatehouse Bank – The existing range has been withdrawn and replaced with fixed rates for the Limited Edition from 5.68% (two years) and 5.63% (five years); Green products were introduced at 10bps lower rates.
• Hanley Economic Building Society – RIO’s discounted flexible product has been discontinued.
• Hinckley & Rugby Building Society – A new discounted mortgage was introduced; the new Skilled Worker Visa standards have been made up to 95% LTV.
• Kensington Mortgages – One five-year Residential Select product has been withdrawn.
• Leeds Building Society – Many first consumer, second consumer and access products have been withdrawn.
• Newcastle Building Society – New tracker products launched from 4.25%; The new fixed rates were implemented from 4.80% for two and five times.
• Santander – Deadlines are extended by one month; new consumer tracker products launched from 4.18%; new fixed rates have been introduced from 4.55%-5.02% for terms of two, three, five and ten years.
• Scottish Building Society – The lending area has been extended to cover the whole of Great Britain.
• Suffolk Building Society – A new rate of fixed rate was introduced from 5.75% for two years and 5.69% for five years.
• West Brom Building Society – New five-year products were introduced from 5.05%; several existing five-year products have been discontinued.
• Yorkshire Building Society – Several high-quality products have been withdrawn.