Weekly rate watch: Fixes continue to climb

The average rates for two-year and three-year fixes both lifted by 5 basis points, to 3.03% and 3.01%, respectively.

Over longer terms, an average five-year fix lifted by 6 basis points to 3.17%, while an average 10-year fix edged up 3 basis points to end the week at 3.21%.

Two-year fixes

The biggest gain registered within this fix came at the 70% loan-to-value average rate and the 60% LTV average rate, which both rose by 7 basis points to 3.14% and 2.60%, respectively.

A 95% LTV average rate lifted by 3 basis points to 3.36%, while the 50% LTV average rate was the only loan at this level that did not rise, remaining unchanged at 2.85%.

Three-year fixes

An 85% LTV average rate posted the biggest gain in this fix rising by 7 basis points to 2.99%, just ahead of an 80% LTV average rate, which lifted by 6 basis points to 2.92%.

A 95% LTV average rate was 3 basis points higher at 3.24%, while a 90% LTV average rate rose by 5 basis points to 3.11%.

Five-year fixes

A 70% LTV average rate notched the highest rise at this level, gaining 8 basis points to end the week at 3.26%, a 95% LTV average rate lifted 4 basis points to 3.47%.

An 85% LTV average rate and an 80% LTV average rate both rose by 5 basis points to 3.23% and 3.21%, respectively.

10-year fixes

A 60% LTV average rate was the biggest gainer at this mark, rising 7 basis points to 3.13%, while a 75% LTV average rate lifted 4 basis points to 2.98%. Average rates at all other loan values were unchanged.

Moneyfacts expert Eleanor Williams says: “Updates across the residential mortgage sector continue to be dominated by rate rises. This week we noted some significant shifts from a number of the big brands – in the latest updates Santander included increases to fixed rates of as much as 0.55%, while TSB put up selected fixed rate deals by up to 0.50%.

In Barclays’ latest mortgage update some selected fixed rates rose by up to 0.27%. HSBC also increased fixed rates by up to 0.25%, and First Direct applied rate rises of up to 0.20% to its fixed rates as well, excluding offset options.

“Borrowers considering mid-term fixed rate deals may wish to note that from the mutuals this week updates have included Skipton Building Society applying notable rises of up to 0.37% across five-year fixed rates, and Leeds Building Society also put up the initial rates on a handful of its five-year fixed deals by up to 0.15%.

“West Brom Building Society tweaked its rates, with selected fixed rate products rising by up to 0.35% and also applying a 0.40% uplift to one of its discounted variable deals, while Cumberland Building Society also made rate increases to both two- and five-year fixed rates of up to 0.43%.

“New deals launched to the market this week came from Santander who reintroduced a range of no-fee fixed products to its range. First Direct entered the market with products aimed at those with a 5% deposit looking to take a step onto the property ladder, and Cambridge Building Society launched new ‘First Step’ mortgages available to those with as little as a 2% deposit, designed to help first-time buyers.

“Other new propositions came from TSB who introduced a ‘new build’ purchase product which is available via intermediaries, and Gatehouse Bank launched new fixed-rate ‘green’ deals.”