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 Return to June Levels Amid Widespread Lender Repricing
Average fixed-rate mortgage prices have risen back to June levels as more than a dozen lenders repriced their products this week, according to Moneyfacts. The average two-year fixed mortgage rate increased by 9 basis points to 5.59%, up from 5.5% last week, while the average five-year fixed rate rose by 5 basis points to 5.61% over the same period.
Moneyfacts reported that at higher loan-to-value (LTV) tiers, the average five-year fixed rate at 95% LTV surpassed 6% for the first time since early June, rising from 5.95% to 6.01% week-on-week. At 90% LTV, the average rate increased from 5.61% to 5.69%.
Over a dozen lenders, including major high street banks, implemented rate increases on selected fixed-rate mortgage products. Accord Mortgages, Atom Bank, Bank of Ireland Intermediaries, Barclays Mortgage, Halifax, HSBC, Leeds Building Society, Lloyds Bank, NatWest, Perenna, Principality Building Society, Royal Bank of Scotland, Santander, Skipton Building Society, TSB, West Brom Building Society, and Yorkshire Building Society all raised rates on selected products, with increases ranging up to 60 basis points in some cases.
Some lenders also made reductions on selected products. Accord Mortgages, Gen H, Principality Building Society, and Tipton & Coseley Building Society reduced rates on certain fixed-rate mortgages by up to 11 basis points.
There were also product withdrawals and changes. Bank of Ireland Intermediaries and Bank of Ireland UK withdrew selected fixed-rate mortgages, while Furness Building Society withdrew two-year fixed-rate mortgages for house purchase but expanded the availability of remaining two-year fixed-rate products.
These changes may impact letting agents and inventory clerks by influencing landlord and tenant decisions regarding property purchases and remortgages, particularly at higher LTVs.
Source: Mortgage Strategy