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-rate mortgage hikes dominate the market, says Moneyfacts

Average fixed-rate mortgage prices rose this week as lenders made rounds of rate hikes, according to the latest Moneyfacts Rate Watch. The average two-year fix now stands at 5.67%, up 7bps from 5.6% last week, while the typical five-year fix rose 8bps to 5.72% from 5.64%.

Lenders move to raise rates

In total, 28 lenders made mortgage product changes this week. Twenty either increased rates or made mixed repricing changes, compared with just three lenders making net cuts.

Moneyfacts head of consumer finance Adam French said the latest mortgage rate increases come as wholesale funding costs have risen sharply. Two-year swap rates have climbed from 4.33% to around 4.6%, while five-year swaps have risen from 4.43% to around 4.7% since 4 September.

The rise follows the European Central Bank increasing its bank rate, which has strengthened market expectations that other central banks, including the Bank of England, could also be forced to raise rates in the months ahead.

Further pressure on rates expected

French warned that mortgage rates have only just caught up with earlier increases in swap rates, so lenders now face further pressure to reprice. Unless swap rates fall back significantly, borrowers should prepare for further mortgage rate increases in the weeks ahead.

Notable lender changes

Among the changes reported: Accord Mortgages increased fixed rates by up to 15bps; Coventry Building Society raised fixed rates by 20bps; HSBC increased fixed rates by up to 17bps; Halifax raised selected fixed rates by up to 12bps for direct business and up to 18bps via intermediaries; Leeds Building Society increased selected fixed rates by up to 29bps; Nationwide raised selected fixed rates by up to 20bps and tracker rates by up to 5bps; and Santander increased selected fixed rates by up to 25bps and tracker rates by up to 15bps.

Some lenders cut rates: Atom Bank reduced fixed rates by 10bps, Darlington Building Society cut selected fixed rates by up to 30bps, and Progressive Building Society reduced two-year fixed and discounted variable rates for house purchase by 20bps. Barclays selected fixed rates increased by up to 18bps before being reduced by up to 20bps, with its two-year tracker also cut by 4bps.

What this means for agents and clerks

For letting agents and inventory clerks, rising fixed rates affect landlord borrowing costs, which can influence buy-to-let decisions, portfolio sales and rental pricing conversations. With further rate increases possible in the weeks ahead, staying informed on lender repricing will help when advising landlords on remortgaging or reviewing tenancy terms.