Mortgage Rates Remain Flat Amid Quieter Market Activity

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.

Mortgage Rates Remain Flat Amid Quieter Market Activity

Mortgage rate activity was subdued this week, with fixed-rate reductions outweighing increases but having minimal effect on average mortgage pricing, according to Moneyfacts. The average two-year fixed mortgage rate fell by 0.01 percentage points to 5.59%, while the average five-year fixed rate remained unchanged at 5.63%.

Moneyfacts reported that the summer holiday period and the recent bank holiday contributed to a quieter level of lender repricing. Despite some rate cuts, both the two- and five-year average fixed rates remain above their levels at the start of July, when they stood at 5.52%. However, they are slightly below the rates recorded at the start of August.

Several lenders made notable changes to their mortgage products this week. Bank of Ireland Intermediaries and Bank of Ireland UK reduced selected fixed rates by up to 10 basis points (bps). Halifax cut selected fixed rates by up to 13bps via intermediaries and 11bps via direct business. Leeds Building Society reduced selected fixed rates by up to 19bps, with Income Plus rates cut by up to 10bps. Lloyds Bank reduced selected house purchase fixed rates by up to 11bps, while Suffolk Building Society cut selected fixed rates by up to 10bps. TSB and Vida Homeloans reduced selected fixed rates by up to 20bps, though Vida Homeloans also increased some rates by 5bps. Gen H increased its New Build Boost fixed rate by 5bps, and Hodge increased RIO fixed rates by up to 40bps.

In tracker and discounted variable products, Earl Shilton Building Society increased discounted variable mortgage rates by 25bps, while Suffolk Building Society reduced discounted variable rates by up to 14bps.

For letting agents and inventory clerks, these developments indicate a period of relative stability in mortgage rates, with only minor adjustments from lenders during a quieter market period.