Standard mortgage rates drop as more than a dozen lenders cut back: Moneyfacts – Mortgage Strategy
The average mortgage rate fell again this week, although lenders had a slow start to the week, according to Moneyfacts.
The two-year yield fell 5bps to 5.68% from last week, while the five-year yield fell 3bps to 5.63%, the latest Moneyfacts rating shows.
In the prime loan categories, the average two-year fixed 95% LTV ratio fell from 6.3% to 6.22% each week, while for the 90% LTV the rate fell from 6% to 5.94%.
The biggest falls were seen in the 10-year fixed at 100% LTV, which fell by 25bps to an average of 6.65%, and the two-year fixed at 70% LTV, which fell by 19bps to an average of 5.29%.
Moneyfacts finance expert Rachel Springall said: “Despite a slow start to the week for mortgage activity after the bank holiday weekend, more than a dozen lenders still cut fixed rates.
“With exchange rates lower than they were last month, fixed rates on average continued to fall from their peaks in April. It’s now been three full months since the turmoil in the Middle East began to wreak havoc on the mortgage market, so borrowers will be hoping for more stability in the coming weeks.
“However, as seen recently, markets need firm plans for the reopening of the Strait of Hormuz and what that will mean for future prices, until then they will remain in doubt. Even if the Strait is reopened and global tensions ease, rising costs of living are still expected to hit UK households this year.”
Adjusted rate movements
- April Houses: reduced up to 25bps
- Bank of Ireland (Intermediaries): reduced up to 53bps
- Bank of Ireland UK: reduced up to 10bps
- Barclays Mortgage: reduced up to 43bps
- Coventry Building Society: reduced up to 16bps
- Gen H: reduced up to 30bps
- Kensington: reduced up to 15bps and increased up to 1bp
- Leek Building Society: reduced up to 20bps
- LiveMore Capital: reduced up to 10bps
- NatWest: reduced up to 21bps
- NatWest Intermediary Solutions: reduced up to 21bps
- Perena: increased by up to 66bps
- Royal Bank of Scotland: reduced up to 21bps
- Skipton Building Society: reduced by up to 29bps and increased by up to 1bp
- Vida Homeloans: reduced up to 10bps
Unbalanced changes
- Accord Mortgages: expiration dates have been extended to all ranges
- Bank of Ireland (Intermediaries): new 90% fixed LTV rates; selected deadlines have been extended
- Bank of Ireland UK: new 90% fixed LTV rates; selected deadlines have been extended
- Hanley Economic Building Society: Discounted flexible products and discounted profit only have been withdrawn and replaced with a new range
- Kensington: selected Residential Select fixed products withdrawn
- Saffron Building Society: Introducing a new, self-employed contractor, premier salary and fixed rates
- Skipton Building Society: deadlines extended; New delayed start, purchase and remortgage fixed distances have been introduced
- Tipton & Coseley Building Society: Family Assist flexible product with discount withdrawn
