More fixed rate cuts as lender competition intensifies: Moneyfacts – Mortgage Strategy

Lenders continued to cut fixed rates this week as competition increased, according to the latest Moneyfacts rate watch.

The two-year fixed rate is now 5.46%, down from 5.51% last week.

The standard five-year fixed rate is also currently at 5.51%, a reduction from 5.48% last week.

Moneyfacts financial expert Rachel Springall said:The rate cut for mortgages begins this week, with 20 lenders reducing loans, and others introducing new deals or renewing existing rates. Building societies made some significant rate moves and competition was especially strong in the higher value mortgage categories.

“Lenders have continued to reduce mortgage rates in recent weeks as lower exchange rates feed into house prices.

“Another week of widespread price cuts will no doubt be welcome, especially for deals available to those with small deposits.

“Although the improvement in global market sentiments over the past few weeks has resulted in lower exchange rates, the cost of capital remains highly sensitive to political conditions. Any renewed market volatility could quickly feed into exchange rates and slow the rate of deleveraging in the coming weeks.”

Barclays made selective fixed rate cuts of up to 66bps, while Halifax and Lloyds Bank cut up to 15bps.

Nationwide Building Society cut fixed rates by up to 19bps. Yorkshire Building Society has also reduced selected fixed rates by up to 20bps.

The building societies have been very active throughout this week. West Brom Building Society reduced selected fixed rates by up to 18bps, while Leeds Building Society reduced fixed rates by up to 21bps and introduced new five-year products at 80% and 85% LTV.

Constant rate changes

• Accord Mortgages – Changed levels are reduced by arrival 30 bps.
• AIB (NI) – Changed levels are reduced by arrival it’s 19bpsalthough selected LTV products of 95% have increased by arrival 4bps.
• Afin Bank – Changed levels are reduced by arrival it’s 15bpsalthough other products are increasing in arrival 10 bps.
• Atom Bank – Changed levels are reduced by arrival 20 bps.
• Bank of Ireland Intermediaries – Changed levels are reduced by arrival 40 bps.
• Bank of Ireland UK – Changed levels are reduced by arrival 40 bps.
• Barclays – Changed levels are reduced by arrival it’s 66bps.
• Coventry Building Society – Changed levels increased by arrival it’s 7bps.
• Danske Bank – Default rates on selected large loans have been reduced to it’s 16bps.
• Gene H – Selected default values ​​increased by 5 bps.
• Halifax – Changed levels are reduced by arrival it’s 15bps.
• Kensington – Changed levels are reduced by arrival 40 bps.
• Leeds Building Society – Changed levels are reduced by arrival it’s 21bps.
• Lloyds Bank – Changed levels are reduced by arrival it’s 15bps.
• World Construction Association – Changed levels are reduced by arrival it’s 19bps.
• Pepper Money – Changed levels are reduced by arrival 139 bps.
• Principal Building Society – Changed levels are reduced by arrival it’s 17bps.
• Scottish Building Society – Changed levels are reduced by arrival it’s 35bps (excluding 95% fixed LTV products).
• Skipton Building Society – Changed levels increased by arrival 14bps.
• United Trust Bank – Changed levels are reduced by arrival 100bps.
• Girls Money – Changed levels are reduced by arrival it’s 16bps.
• West Brom Building Society – Changed levels are reduced by arrival it’s 18bps.
• Yorkshire Building Society – Changed levels are reduced by arrival 20 bps.

Tracker and discounted variable rate changes

• Afin Bank – Tracker prices are reduced by arrival 40 bpsalthough other products are increasing in arrival it’s 41bps.
• Ecology Building Society – Reduced variable rate increased by 50 bps.
• Hinckley & Rugby Building Society – Discounted flexible rates increased by arrival it’s 25bps.
• World Construction Association – Tracker prices are reduced by arrival 12 bps.
• Skipton Building Society – Tracker values ​​increased 11 bps.
• United Trust Bank – Tracker prices are reduced by arrival 100bps.
• Girls Money – Tracker prices are reduced by arrival it’s 15bps.
• Yorkshire Building Society – Tracker values ​​increased 3 bps.