Average fixed-rate mortgage rates were flat this week in a quieter market, according to the latest Moneyfacts rate watch.
The typical two-year fix rate remains unchanged at 5.97% this week, with the average five-year fix also holding steady at 6%.
Adam French, head of consumer finance at Moneyfacts, said: “Eight lenders made increases, compared to five reductions and three lenders made changes in both directions. While increases outweighed reductions, there were some significant reductions and competitive new deals, particularly for new borrowers and high loan-to-value borrowers.
“Unchanged average mortgage interest rates and a relatively quiet week among senior lenders suggest that the market is taking stock of the situation ahead of a potential rate rise next week. Attention is likely to be focused on what the Monetary Policy Committee’s comments indicate about the future direction of interest rates.”
Noticeable changes this week
- Atomic bank – Increase specified fixed interest rates by up to 15 basis points.
- Bank of Ireland Brokers – Specific fixed interest rates were reduced by up to 13 basis points, although designated three- and five-year fixed interest rates were increased by up to 10 basis points.
- Bank of Ireland in the United Kingdom – Reducing fixed interest rates by up to 14 basis points; New purchase products have been launched, including a 95% LTV option at 5.72% and an 85% LTV product with £300 cashback.
- Bath Building Society – Increase fixed interest rates by up to 40 basis points.
- Buckinghamshire Building Society – Increase discounted two-year variable interest rates by up to 30 basis points; Selected retirement and later life products have been withdrawn.
- Coventry Building Society – Selected fixed rates discounted by up to 26 basis points; Eligibility is limited to first-time buyers on select products.
- Gatehouse Bank – Increase specified fixed interest rates by 25 basis points.
- Kensington – Increase fixed fixed interest rates by up to 30 basis points; Custom Champions and Mortgage Professionals introduced.
- Newcastle Building Society – The two-year designated tracking rates were increased by up to 6 basis points, while the five-year tracking rate was reduced by 84 basis points; Cashback increased from £200 to £250.
- Nottingham Building Society – Increase fixed interest rates by up to 12 basis points.
- Penrith Building Society – Increase discounted two-year variable rates for mortgage refinancing borrowers by up to 15 basis points.
- Pepper money – Mixed changes in fixed interest rates, with specific rates increasing by up to 91 basis points or decreasing by up to 71 basis points.
- Emirate Building Society – Increase specified fixed interest rates by up to 15 basis points.
- Progressive Building Society – Launching a new range of mortgages.
- Telecommunication Standardization Bureau – Selected fixed rates discounted by up to 10 basis points.
- Brokers Cooperative Bank – Reducing fixed interest rates by up to 20 basis points.
- Yorkshire Building Society – Reducing fixed interest rates by 5 basis points.
