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 Fixed Mortgage Rates Drop as Lenders Cut Rates
Average fixed rate mortgages have fallen again this week, according to Moneyfacts. The average two-year fixed rate dropped by 5 basis points to 5.68%, while the typical five-year fixed rate fell by 3 basis points to 5.63% compared to last week.
At higher loan-to-value (LTV) tiers, the average two-year fixed rate at 95% LTV decreased from 6.3% to 6.22% week-on-week. The 90% LTV rate also fell, moving from 6% to 5.94%. The largest reductions were seen in 10-year fixes at 100% LTV, which fell by 25 basis points to 6.65%, and two-year fixes at 70% LTV, which dropped by 19 basis points to 5.29%.
Moneyfacts reported that over a dozen lenders made fixed rate cuts this week. Lenders making reductions include April Mortgages (up to 25bps), Bank of Ireland (Intermediaries) (up to 53bps), Bank of Ireland UK (up to 10bps), Barclays Mortgage (up to 43bps), Coventry Building Society (up to 16bps), Gen H (up to 30bps), Kensington (up to 15bps), Leek Building Society (up to 20bps), LiveMore Capital (up to 10bps), NatWest and NatWest Intermediary Solutions (up to 21bps), Royal Bank of Scotland (up to 21bps), Skipton Building Society (up to 29bps), and Vida Homeloans (up to 10bps). Some lenders also made small increases on selected products.
In addition to rate changes, several lenders made non-rate adjustments. These include new product launches, end date extensions, and product withdrawals. For example, Accord Mortgages extended end dates across its range, Bank of Ireland (Intermediaries) and Bank of Ireland UK launched new 90% LTV fixed rates and extended selected end dates, and Hanley Economic Building Society replaced its discounted variable products with a new range. Other changes include new fixed ranges from Saffron Building Society and Skipton Building Society, and product withdrawals from Kensington and Tipton & Coseley Building Society.
These developments may be relevant for UK letting agents and inventory clerks monitoring mortgage market trends and their potential impact on the rental sector.
Source: Mortgage Strategy