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.
Fixed Mortgage Rates See Modest Decline This Week
Average fixed mortgage rates have edged down again this week, according to the latest Moneyfacts rate watch. The average two-year fixed rate now stands at 5.62%, down from 5.65% last week, while the average five-year fixed rate has dropped to 5.59%, a decrease of 2 basis points.
Moneyfacts reports that some of the most significant reductions this week have benefited lower-risk borrowers. The average two-year fixed rate at 60% loan-to-value (LTV) fell by 8 basis points, from 5.15% to 5.07%. The average five-year equivalent at 60% LTV decreased by 4 basis points, from 5.28% to 5.24%.
Lenders including Accord and NatWest have refreshed their product ranges and adjusted loan limits to attract borrowers with more equity. For a mortgage of £250,000 over 25 years, a typical borrower securing a two-year fixed rate at 60% LTV would now pay around £1,472 per month, which is approximately £12 less per month than last week.
Notable Lender Rate Changes
Several lenders have made changes to their fixed and tracker mortgage rates:
- AIB (NI): Fixed rates reduced by up to 16 basis points; some increased by 2 basis points; end dates extended.
- Accord Mortgages: Selected fixed rates reduced by up to 46 basis points or increased by up to 10 basis points; tracker rates reduced by up to 21 basis points.
- Atom Bank: Near Prime fixed rates reduced by 10 basis points; end dates extended.
- Buckinghamshire Building Society: RIO and Retirement fixed rates reduced by 6 basis points.
- Coventry Building Society: Selected fixed rates reduced by up to 20 basis points.
- Gatehouse Bank: Selected fixed rates reduced by 10 basis points.
- Gen H: Selected five-year fixed rates increased by 15 basis points.
- HSBC: Selected fixed rates reduced by up to 11 basis points; tracker rates reduced by up to 8 basis points.
- Halifax: Selected fixed rates reduced by up to 10 basis points.
- Kensington: Selected fixed rates reduced marginally; revert-to and tracker rates increased by 15 basis points.
- Leeds Building Society: Selected fixed rates reduced by up to 5 basis points; end dates extended.
- Leek Building Society: Selected fixed rates increased by up to 10 basis points; end dates extended.
- Lloyds Bank: Mixed changes, with selected fixed rates reduced by up to 10 basis points or increased by up to 5 basis points.
- Marsden Building Society: Selected fixed and discounted variable rates saw mixed changes; various end dates extended.
- NatWest: Selected fixed rates reduced by up to 11 basis points; maximum loan sizes amended.
- NatWest Intermediary Solutions: Selected fixed rates reduced by up to 10 basis points.
- Precise Mortgages: Fixed rates reduced by up to 35 basis points.
- Principality Building Society: Selected fixed rates reduced by up to 10 basis points.
- Progressive Building Society: Fixed rates reduced by up to 40 basis points; discounted variable rates saw mixed movements.
- Royal Bank of Scotland: Selected fixed rates reduced by up to 10 basis points; maximum loan sizes amended.
- TSB: Selected fixed rates reduced by up to 25 basis points.
- Yorkshire Building Society: Fixed rates reduced by up to 15 basis points; tracker rates reduced by 9 basis points.
- Virgin Money: End dates extended across range.
Product Launches and Withdrawals
- Accord Mortgages: Selected remortgage fixed rates withdrawn; new remortgage fixed and tracker products launched.
- Buckinghamshire Building Society: Selected discounted variable and fixed rates withdrawn.
- Cambridge Building Society: New core, interest-only and First Step fixed rates launched, including a 98% LTV product.
- Gen H: £499-fee fixed rate products withdrawn and not replaced.
- Kensington: Selected Select fixed rate withdrawn and range restructured; new Select Special five-year fixed rates launched.
- Leeds Building Society: Selected FTB, Reach and Income Plus products withdrawn.
Source: Mortgage Strategy