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.
Lenders Reduce Fixed Mortgage Rates as Competition Grows
UK lenders have continued to cut fixed mortgage rates this week, according to the latest Moneyfacts rate watch. The average two-year fixed rate now stands at 5.46%, down from 5.51% last week, while the typical five-year fixed rate is 5.51%, a slight decrease from 5.48% one week ago.
Moneyfacts reported that 20 lenders have passed on reductions, with others launching new deals or updating their product ranges. Building societies were particularly active, making notable rate changes and increasing competition, especially at higher loan-to-value (LTV) tiers.
Barclays made selected fixed rate cuts of up to 66 basis points (bps), while Halifax and Lloyds Bank reduced rates by up to 15bps. Nationwide Building Society cut fixed rates by up to 19bps, and Yorkshire Building Society reduced selected fixed rates by up to 20bps. Leeds Building Society also reduced fixed rates by up to 21bps and introduced new five-year products at 80% and 85% LTV.
Other lenders making reductions include Accord Mortgages (up to 30bps), AIB (NI) (up to 19bps), Atom Bank (up to 20bps), Bank of Ireland Intermediaries and Bank of Ireland UK (both up to 40bps), Kensington (up to 40bps), Pepper Money (up to 139bps), Principality Building Society (up to 17bps), Scottish Building Society (up to 35bps), United Trust Bank (up to 100bps), Virgin Money (up to 16bps), and West Brom Building Society (up to 18bps).
Some lenders, such as Coventry Building Society and Skipton Building Society, increased selected fixed rates by up to 7bps and 14bps respectively. Gen H also increased selected fixed rates by 5bps.
Tracker and discounted variable rates saw mixed changes. Afin Bank reduced tracker rates by up to 40bps but increased some products by up to 41bps. Ecology Building Society increased its discounted variable rate by 50bps, and Hinckley & Rugby Building Society increased discounted variable rates by up to 25bps. Nationwide Building Society reduced tracker rates by up to 12bps, while Skipton Building Society increased tracker rates by 11bps. United Trust Bank reduced tracker rates by up to 100bps, and Virgin Money also made reductions.
These changes may be relevant for letting agents and inventory clerks monitoring mortgage market trends, as shifts in mortgage rates can impact landlord and tenant activity in the UK property sector.
Source: Mortgage Strategy