The average fixed-rate mortgage rate rose again this week, despite promising signs of interest rate cuts from major lenders, according to Moneyfacts.
Moneyfacts’ latest rate watch found that the average two-year fixed rate is now 5.97%, up one basis point from 5.96% at the same point last week.
The cost of the typical five-year fix is now 5.99%, up 3 basis points from last week, but 1 basis point lower than the average of 6% recorded on October 5.
“Average mortgage interest rates have continued to rise weekly, but lenders appear to be taking a more measured approach to pricing than they did during the period of rapid interest rate adjustments in September,” said Caitlin Estell, personal finance analyst at Moneyfacts.
“Although a few lenders offered rate cuts this week, pricing activity remains mixed and with swap rates still volatile, it may be too early to tell if rates have peaked or there is more room to move.
“Some major brands moved to make changes to fixed rates this week, with Lloyds Bank cutting interest rates by up to 10 basis points and Halifax making some rate cuts of up to 10 basis points, but also withdrawing selected fixed rate and variable rate mortgages.”
Meanwhile, Santander cut fixed interest rates by up to 25 basis points and variable interest rates by up to 14 basis points.
Moves at a constant rate
- Melton Building Society – Increase fixed fixed rates by up to 31 basis points. Fixed rate mortgage rate increased by 5.29% to 31.12.31 by 26 basis points.
- Lloyds Bank – Select fixed rate mortgages have been reduced by up to 10 basis points
- Kensington – Base fixed interest rates rose by up to 32 basis points. Selected professional fixed rates rose by up to 20 basis points. “Resi” 12, “Resi 6” and “Select” fixed rates increased by up to 30 basis points
- Halifax – Select fixed rate mortgages reduced by up to 10 basis points (direct and brokers)
- AIB (NI) – Fixed rate mortgages were reduced by 9 basis points
- Yorkshire Building Society – Fixed rate mortgages have been reduced by up to 53 basis points
- Basis – Select discounts on fixed rate mortgage deals of up to 20 basis points
- Coventry Building Society – Fixed rate mortgages increased by up to 13 basis points
- Santander – Select fixed mortgage rates have been reduced by up to 25 basis points
- Generation H – Fixed rate mortgages increase by up to 13 basis points or decrease by up to 39 basis points
- Compact Mortgage – Fixed rate mortgages were reduced by 10 basis points
- Leek Building Society – Select fixed rate mortgage deals increased by up to 20 basis points
Movements at variable rates
- Hinckley & Rugby Building Society – Select discounted variable deals increased by up to 25 basis points
- Santander – Selected variable tracking rates have been reduced by up to 14 basis points
- Melton Building Society – 5.05% variable interest rate for two years reduced by 44 basis points
- Buckinghamshire Building Society – Select discounted variable rate deals increased by 10 basis points
Withdrawals/releases
- Nottingham Building Society – New ‘make it possible’ mortgages at a fixed interest rate of 5.99% until 31.12.28 and 6.01% until 31.12.31. Both have a maximum of 75% LTV, a £999 fee and a free valuation incentive
- Coventry Building Society – new fixed rates of 5.10% and 5.35% to 28.2.29 and 5.11% and 5.21% to 29.2.32
- Atom Bank – “Prime” rates are fixed with withdrawal fees. Relaunching new ‘near prime’ mortgages with new interest rates up to 31.1.29 starting at 5.69%; To 1/31/30 starting from 5.84% and to 1/31/32 starting from 5.84%. Fixed-rate real estate loans have been relaunched with new rates to 1/31/29 and 1/31/30 starting at 5.99% and to 1/31/32 starting at 5.94%.
- Skipton Building Society – New LTI enhanced fixed rate mortgages for house purchases only to 31.1.29 at 5.92% no fees and 5.75% fees £995; to 31.1.30 at 5.92% without fees and 5.82% with fees of £995; and to 31.1.32 at 5.88% with no fees and 5.76% with a fee of £995 – all up to a maximum of 95%, with a free valuation incentive and available on up to 5.5x income. Variable tracking rates supporting new LTI for home purchase only up to 31.1.29 at 5.04% (BBR+1.29%), capped at 95%, £995 fee and with free valuation incentive. 75% – 90% Loan-to-Value LTI Boost products now available at up to 6x income (previously up to 5.5x)
- Buckinghamshire Building Society – New fixed RIO rates range from 6.19% to 28.2.30, maximum 60%, fees £499; New fixed pension rate of 6.19% to 28.2.30, maximum 75%, fees £999; New STB daily flat rate of 6.29% to 28.2.30, maximum 95%, fees £999; The new FTB rate is fixed from 6.29% to 28.2.30, up to a maximum of 95%, with no fees.
- Halifax – Fixed rate and variable rate mortgages with variable tracking rate have been withdrawn
- Bathroom Building Society – Mortgage drawn at a fixed rate of 5.34% for five years
