The average cost of a mortgage fell this week, according to the latest figures from Moneyfacts, as lenders continue to compete cautiously.
Moneyfacts found the two-year fixed average fell 2bps to 5.73%, while the five-year standard deviation fell 1bps to 5.66%.
The most significant decline was in subprime lending, with the fixed 90% two-year LTV ratio down 4bps from 6.04% to 6%. The fixed five-year fixed rate fell by 7bps from 5.87% to 5.8%.
Moneyfacts head of consumer finance Adam French said: “The average mortgage rate has fallen again this week as mainstream lenders continue to compete despite uncertainty around inflation, funding costs and the future direction of the Bank of England’s base rate.
“A total of 27 mortgage lenders made significant changes this week.
“The recent changes may also suggest that some lenders are pursuing growth by targeting niche segments of borrowers rather than re-pricing.
“The regional effects of mortgage pricing have also become less clear this week. Higher borrowing costs are putting more strain on high-priced southern housing markets, while lower average property prices in northern regions have helped cushion affordability shocks.”
Significant changes this week
- April Mortgages – Fixed rates up by up to 20bps.
- Atom Bank – Fixed rates hiked up to 15bps.
- Barclays Mortgage – Tracker rates increase slightly; selected fixed rates have been reduced by up to 15bps.
- Bath Building Society – Selected rates withdrawn.
- Chorley Building Society – Brand New Rate Reducer Product Launched at 95% LTV with Return Incentive.
- Darlington Building Society – Selected fixed rates reduced by up to 30bps; deadlines have been extended.
- Dudley Building Society – New fixed and interest-only rates introduced; discounted variable rates have been reduced by up to 40bps.
- Halifax – Selected fixed rates cut by up to 14bps; new 98% LTV low deposit product launched for first time buyers.
- Hanley Economic Building Society – Discounted variable rates and RIO reduced by up to 64bps.
- Leeds Building Society – Fixed rates cut by up to 36bps; new standard rates have been introduced; deadlines extended; selected products have been withdrawn.
- Leek Building Society – Selected rates increased by up to 8bps.
- Lloyds Bank – Selected fixed rates cut by up to 14bps; new 98% LTV low deposit product launched for first time buyers.
- Melton Building Society – Selected fixed rates up to 14bps; deadlines have been extended.
- NatWest – Fixed rates up 24bps; deadlines have been extended.
- NatWest Intermediary Solutions – Fixed rates up by up to 24bps; deadlines have been extended.
- Newcastle Building Society – Selected self-service fixed rates increased; deadlines have been extended.
- Nottingham Building Society – Fixed rates and RIO up 15bps; deadlines have been extended.
- Principality Building Society – Mixed changes with selected fixed and tracker rates increased, while one fixed rate decreased slightly.
- Royal Bank of Scotland – Fixed rates up 24bps; deadlines have been extended.
- Santander – Selected fixed and tracker rates reduced by up to 23bps and 27bps respectively; selected FTB products have been withdrawn; deadlines have been extended.
- Skipton Building Society – Selected fixed and Delayed Start products discounted by up to 19bps.
- Suffolk Building Society – All fixed rate loans are temporarily waived.
- TSB – Selected default rates are reduced by up to 20bps.
- Co-operative Bank for Intermediaries – Selected LTV and Green fixed rate increased; fixed remortgage rates are reduced.
- Tipton & Coseley Building Society – The loan range has been replaced by a number of new fixed and discount products, including the RIO, LIR and Credit Plus ranges.
- United Trust Bank – Fixed and tracker rates increased across Prime range by up to 35bps; 90% LTV products withdrawn.
- West Brom Building Society – Selected fixed rates cut by up to 32bps; A new 90% LTV ratio has been introduced.
