Mortgage rates ease as market adjusts to uncertainty: Moneyfacts – Mortgage Strategy
Average mortgage rates are almost flat this week as lenders show caution, according to the latest Moneyfacts rate watch.
The two-year fixed rate remained unchanged at 5.78% compared to last week, while the five-year fixed rate increased from 5.68% to 5.70%.
The biggest cut this week was the three-year fix to 60% LTV, which was reduced by an average of 3bps to 4.99%.
Other types of mortgages saw overall rates rise this week, Moneyfacts found.
The largest was for the 10-year fixed at 60% LTV, which rose 14bps to 6.46%.
The second largest increase was for the fixed 10-year to 75% LTV, which saw an 11bps rise to a rate of 6.27%.
Moneyfacts’ head of consumer finance Adam French said: “The recent downward momentum in mortgage rates appears to be faltering as lenders become more cautious amid continued volatility in funding costs.
Exchange rates look set to end the week around 4.20-4.25% after rising slightly more than 10bps higher on Tuesday.
Nineteen lenders made significant changes to their mortgage rates this week, with a mix of cuts and increases.
Seven lenders reduced selected rates, while 10 increased rates, and eight lenders introduced new products or renewed existing ranges.
France added: “At the moment, the scope of the short-term mortgage interest rate cut appears to be limited until the cost of financing begins to fall convincingly.”
Significant changes this week
Aldermore – The loan range is withdrawn and replaced with new fixed rate products for all terms of 2, 3 and 5 years.
Bank of Ireland Intermediaries – Selected default values are reduced to 24bps; deadlines extended; amended fees; new fixed and standard fixed rates have been introduced.
Bank of Ireland UK – Selected default values are reduced to it’s 24bps; amended fees and allowances; deadlines extended; A new standardized measure has been introduced.
Cambridge Building Society – A new reduced variable level has been introduced; discounted variable rates selected increased by arrival it’s 25bps.
The foundation – Changed levels increased by arrival 30 bps.
Gene H – Selected default values increased by arrival it’s 15bps.
HSBC – Tracker prices are reduced by arrival 30 bps; the default values selected are reduced to 13bps.
Halifax – Selected default values are reduced to it’s 25bps; average deadlines have been extended.
Leeds Building Society – New tracker products have been introduced.
Leek Building Society – Fixed rates are selected and interest only increases by 5 bps.
Lloyds Bank – Selected default values are reduced to it’s 24bps.
Nottingham Building Society – Fixed levels and RIO increased by arrival 20 bps; new modified and RIO products introduced.
Principal Building Society – Selected default levels increased by arrival 13bps; deadlines have been extended.
Saffron Building Society – A new fixed rate level has been introduced, including first-time consumer and self-service products.
Scottish Building Society – Selected default values are reduced to 20 bps.
Skipton Building Society – Changed levels increased by arrival 20 bps.
Co-operative Bank for intermediaries – Selected default values are reduced to it’s 23bps.
United Trust Bank – Levels fixed and tracker increased significantly, by arrival 140 bps.
Vida Homeloans – Selected default levels increased by arrival it’s 54bps; deadlines extended; the fee structure has been updated with a new Fee Saver range introduced.
