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Fixes hold steady   – Mortgage Strategy

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Average fixes held steady this week following recent rises, as Bank of England governor Andrew Bailey said inflation was “moving in the right direction” despite holding the base rate at 5.25%.  

The average rate for a two-year fix edged up by a single basis point to 5.94%, while the average three-year fix fell by 3 basis points to 5.66%, according to Moneyfacts.    

Both the average five-year and 10-year fixes were unchanged at 5.50% and 5.97%, respectively.  

Two-year fixes      

The largest rises in this term came at the 90% LTV and 80% LTV average rates, which both lifted 2 basis points to, 6.16% and 5.97%, respectively.  

Three-year fixes  

The biggest falls at this level saw the 70% LTV average rate come down 8 basis points to 5.61%, followed by the 75% LTV average rate, which slid by 4 basis points to 5.46%.  

Five-year fixes  

The largest uplifts in this term saw the 65% LTV and 50% LTV average rates both rise by 2 basis points to 5.53% and 5.35%, respectively.  

10-year fixes  

All fixes at this level were unchanged.  

Moneyfacts spokesperson Caitlyn Eastell says: “More than ten lenders made fixed rate increases this week, alongside a handful of withdrawals and reductions.   

“In comparison to previous weeks, activity has been mostly subdued and as a result, the average two-year fix rose by only a single basis point week-on-week, while the average five-year fix saw no change.  

“Those lenders to reduce fixed rates included TSB by up to 15 basis points, Kensington by up to 33 basis points, MPowered Mortgages by up to 65 basis points, and Barclays Mortgage by up to 39 basis points.  

“Alternatively, lenders to increase fixed rates included Lloyds Bank by up to 18 basis points, Metro Bank by 20 basis points, Hodge Bank by 15 basis points, and Virgin Money by up to 20 basis points.  

“Building societies also made a few rate moves this week, those to reduce was Saffron Building Society by 30 basis points.  

“However, there were many more increases, which included Suffolk Building Society by up to 20 basis points, Furness Building Society by up to 25 basis points, Coventry Building Society by up to 18 basis points, Darlington Building Society by up to 20 basis points, West Brom Building Society by up to 20 basis points, Leek Building Society by up to 12 basis points, and Newbury Building Society by up to 20 basis points.  

“Not to go unnoticed, there were some fixed rate deals that were withdrawn by Progressive Building Society, Metro Bank, Mansfield Building Society, Leek Building Society, Penrith Building Society, and Family Building Society.  

“The Bank of England base rate decision may be disheartening for some, but as lenders continue to review their pricing it would be wise for borrowers to seek independent advice to ensure they have guidance to find the most suitable deal.”  

Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by finopulse.
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