The mortgage market felt a mix of rate reductions and increases as well as product withdrawals this week.
As Moneyfacts finance expert Rachel Springall explained fixed rate increases took precedence, and these moved led to a rise to both the overall average two- and five-year fixed rates.
Those lenders to increase fixed rates included TSB by up to 0.25%, Atom Bank by up to 0.20%, Virgin Money by up to 0.05% and Gen H by up to 0.15%.
Building societies made a few rate moves this week, those to increase fixed rates included Newbury Building Society by up to 0.40%, Monmouthshire Building Society by up to 0.35%, Family Building Society by up to 0.25%, Yorkshire Building Society by up to 0.20%, Skipton Building Society by up to 0.18% and Furness Building Society by up to 0.10%.
The lenders to make a mix of fixed rate increases and reductions included MPowered Mortgages increasing rates up to 0.40% but also reduced by up to 0.62%, Clydesdale Bank increased by up to 0.13% but reduced by up to 0.05%, Buckinghamshire Building Society increased by up to 0.10% but reduced by up to 0.20% and Newcastle Building Society increased by up to 0.05% or reduced by up to 0.10%.
“Despite the many rate increases taking precedence, there were a handful of lenders deciding now was the time to make some fixed rate cuts including NatWest and RBS by up to 0.24%, Principality Building Society by up to 0.35% and Tipton & Coseley Building Society by up to 0.20%.
There were also some fixed deals withdrawn by Leek Building Society, The Co-operative Bank, Newcastle Building Society, Family Building Society, Newbury Building Society and Precise Mortgages. Not to go unnoticed, first direct withdrew and replaced fixed deals, and United Trust Bank withdrew and replaced its mortgage range.
Springall also pointed to some eye-catching deals also surfaced this week, including a three-year fixed deal from Yorkshire Building Society, priced at 4.54% and available at 75% loan-to-value for house purchase customers. It includes a free valuation and charges a product fee of £1,495, but it also offers some flexible repayment features.
She added: “Fixed rate re-repricing appeared calmer this week and there were very few prominent brands tweaking their ranges. The Bank of England base rate decision to keep base rate on hold may dampen borrowers’ spirits, but it’s worth pointing out that the swap rate market is starting to calm and could inspire lenders to review their pricing. However, this may well take a couple of weeks for any drops in swaps to take full effect on mortgage pricing.”