Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Average 2-Year Fixed Rate Up 17bps in a Month
The average two-year fixed mortgage rate has risen by 17 basis points over the past month, reaching 5.63%, according to the latest figures from Moneyfacts. The rate remained flat week-on-week, but is now higher than it was a month ago.
Moneyfacts data shows that the average five-year fixed rate increased by 1 basis point to 5.67%, while the average three-year fixed rate dipped by 2 basis points to 5.38%. Compared to a month ago, all three fixed rate categories have seen increases: the two-year average is up from 5.46%, the three-year from 5.17%, and the five-year from 5.48%.
Lender Rate Changes
The report highlights a mixed picture among lenders, with some reducing and others increasing their fixed mortgage rates. Notable reductions include:
- AIB (NI): up to 55bps
- Barclays Mortgage: up to 50bps
- Coventry Building Society: up to 15bps
- Gen H: up to 40bps
- Nationwide Building Society: up to 19bps
- Newcastle Building Society (Self Employed): 20bps
- Suffolk Building Society: up to 19bps
- Virgin Money: up to 8bps
Conversely, several lenders increased selected fixed rates:
- first direct: up to 32bps
- Furness Building Society: up to 31bps (Own New rates up to 56bps)
- Halifax: up to 12bps
- Kensington: up to 40bps
- Leek Building Society: up to 7bps
- Lloyds Bank: up to 12bps
- Melton Building Society: 10bps
- Pepper Money: up to 35bps
- Progressive Building Society: up to 25bps
- Saffron Building Society: 20bps
- Tipton & Coseley Building Society: up to 20bps
- West Brom Building Society: up to 13bps
Product Launches and Withdrawals
Barclays Mortgage launched a new Great Escape fixed rate at 4.88% to 30 September 2029. Coventry Building Society introduced new fixed rates for first-time buyers, with some rates now available only to second-time buyers. Hinckley & Rugby Building Society launched new Credit Renew discounted variable and fixed rate mortgages, and extended the Skilled Worker Visa fixed rate end date by one month. Leeds Building Society launched new fixed rate mortgages from 4.78%. Melton Building Society introduced new discounted variable and fixed rate mortgages. Newcastle Building Society withdrew its Interest Only fixed rate mortgages and launched new fixed rates from 4.99%.
These changes may impact letting agents and inventory clerks as mortgage rate movements can influence landlord decisions and the wider UK property market.
Source: Mortgage Strategy