Lenders began passing on the increase in the Bank of England’s base interest rate as trackers’ average rose 5 basis points over the week to 4.73%, but fixed interest rates fell slightly.
The latest Moneyfacts rate monitor data shows that the average two-year fix fell from 5.97% to 5.96% and the average five-year fix fell from 6% to 5.99%.
Lenders have made mixed moves on pricing this week, but have included some significant cuts of up to 30 basis points by Barclays and up to 40 basis points by Cambridge Building Society.
Accord reduced its loan-to-value deal by 95% and its £5,000 deposit deal by 18 basis points.
April Mortgages and Gen H also reduced their fixed rates.
Both Santander and Nationwide have made hybrid changes targeting specific borrowers.
Adam French, head of consumer finance at Moneyfacts, says: “It was a mixed picture in the mortgage market this week as the Bank of England raised its key interest rate from 3.75% to 4%.
“The interest rate is widely expected to rise to 4.25% in December or February.
“Many lenders have already increased their tracking rates in line with the base rate, and more are expected to follow in the coming days and weeks.
“For someone with a £250,000 mortgage over 25 years, an increase of 0.25 percentage points adds around £37 a month to repayments.
However, French says the picture for fixed mortgage rates is very different.
He adds: “The fixed rate remains mixed, with deep cuts by many big-name lenders offset by increases elsewhere.
“The current fixed mortgage interest rates already reflect market concerns about further increases in the base interest rate, with markets widely anticipating that interest rates may peak at 4.5%-4.75%.
“Another big jump in fixed mortgage rates is unlikely, simply because the Bank of England raised interest rates this week.
“Small declines in average fixed interest rates at Moneyfacts suggest that lenders are continuing to compete despite the rising base rate.
Notable price changes this week:
Agreement Mortgage – Fixed rates discounted by up to 18 basis points; Trackers increased by 25 basis points; New fixed rates have been launched for Cascade of up to 95% LTV.
April Mortgages – Fixed interest rates were reduced by 25 basis points.
Barclays – reducing selected fixed interest rates by up to 30 basis points; Tracking rates increased by 25 basis points.
Cambridge Building Society – Selected two-year fixed rates discounted by up to 40 basis points.
Gen H – Select fixed rates discounted by up to 25 basis points.
Halifax – Select fixed rates reduced by up to 22 basis points; Reducing variable interest rates by up to 11 basis points; Completion dates have been extended.
Hinckley & Rugby Building Society – increased credit assistance and credit renewal rates; Withdrawal of selected products; A new discounted variable rate of up to 95% LTV with cashback has been launched.
Leeds Building Society – increase fixed interest rates by up to 10 basis points; Launching new fixed rates for first-time homebuyers and movers; Withdraw only products of interest; Trackers increased by 25 basis points.
Leek Building Society – New discounted variable rates from 4.90%, including interest-only lending.
Lloyds Bank – Reducing fixed interest rates on remortgages by up to 22 basis points; Variable rates were reduced by up to 11 basis points.
Nationwide Building Society – Reducing specified fixed interest rates by up to 15 basis points or increasing them by 3 basis points; Tracking rates increased by up to 10 bps.
Santander – Select fixed rates reduced by up to 14 basis points or increased by 11 basis points; New trackers launched starting at 4.30%.
Mortgage Lender – Specified fixed rates rose by up to 35 basis points.
Virgin Money – selected fixed rates discounted by up to 17 basis points; Trackers increased by 25 basis points.
West Brom Building Society – Increase fixed fixed rates by up to 16 basis points; Completion dates have been extended by three months.
