All rates rise again, with three-year fixes up, according to Moneyfacts data
The average rate for a two-year fixed rate increased by 8 basis points, to 4.17%, with the aforementioned three-year fixed rate increasing by 23 basis points, bringing its average rate to 4.78%.
Meanwhile, the average rate for a five-year patch found an additional 3 basis points, bringing it to 4.27%, and the average rate for a 10-year patch gained a single basis point. , leaving it at 4.21% as of Friday, August 26. .
The most significant changes this week were at 95% LTV, where the average rate increased by 1 basis point, to 4.45%, and to 70% LTV, where an increase of 15 basis points took the average rate at 4.42%.
And at 65% LTV, the average rate fell by 50 basis points, to 3.87%.
At 70% LTV, the average rate increased by 51 basis points, to 5.86%.
Things were relatively less intense at 90% LTV, with a rate hike of 26 bps leaving the average rate at 4.55% and at 80% LTV, which saw a 28 bps rise to 4, 94%.
Here, at 95% LTV, the average rate has increased by 6 basis points, to 4.46% and, at 70% LTV, the average rate has gained 11 basis points, leaving it at 4.48%.
The move was in the opposite direction at 65% LTV, where the average rate fell 37 basis points to 4.25%.
10 year fixes
There were two changes of interest in this patch this week – to 75% LTV, where the average rate rose 5 basis points, to 4.02% and to 90% LTV, which saw a drop of 21 basis points at 4.58%.
Moneyfacts finance expert Eleanor Williams said: “After a slight lull in activity, by the end of this week the mortgage market was back in action with product updates and range changes. Fixed rate averages continued to rise, particularly in sectors with shorter initial fixed durations.
“From Mutuals, we have dealt with changes from the Nationwide Building Society, where the two- and three-year fixed rates have been increased by 0.40%, and the five-year fixed offers at 95% LTV have increased by 0, 15%. Leeds Building Society has increased the fixed rates in its range by 0.40%, as has the Principality Building Society, which has also launched new ‘Thank you’ products to market in its latest update.
“Halifax has increased rates on certain products for those buying a home, making increases of up to 0.30%. Virgin Money also applied rate increases of up to 0.30% on various of its fixed rate transactions, while early direct increased fixed rates, with 10-year transactions seeing the biggest increases of up to 0.30%. at 0.28%. HSBC raised rates by up to 0.26% and Barclays Mortgages by up to 0.28% on certain fixed products.
“Some other significant rate hikes this week came from Bluestone Mortgages, with fixed rate offerings increasing to 0.60%, as well as fixed and variable rate products at 60% and 65% LTV being retired. Generation Home has increased its fixed rate by 0.45%, except for three-year contracts with a fee of £999, which has increased by 0.46%.
“Withdrawals and range condensing remain a prominent theme, seeing the level of choice for borrowers continue to decline. The TSB started the week withdrawing fixed rates with a fee of £999 and end dates of November 30, 2024 for the first and second buyers of the sale.
“Scottish Building Society has withdrawn its two-year fixed rates, while Kensington Mortgages has withdrawn its ‘Special Edition’ products, as well as the 90% and 95% LTV fixed rates which carried a fee. Elsewhere, we see many providers reduce certain products from their ranges, such as Leeds Building Society, Darlington Building Society and Hinckley & Rugby Building Society, to name a few.