Weekly rate watch: Fixes march upwards

For a two-year fix, the average rate lifted by 6 basis points to 3.23%, while the average rate for a three-year fix rose by 5 basis points to 3.31%. 

The average rate for a five-year fix climbed by 4 basis points to 3.34%, while the average rate for a 10-year fix edged higher by 2 basis points to 3.32%. 

Two-year fixes 

The biggest rises at this level saw both the 80% loan-to-value average rate and the 75% LTV average rate climb by 8 basis points to 3.28% and 3.15%, respectively. 

The 95% LTV rate and the 90% LTV average rate both rose by 6 basis points to 3.42% and 3.27%, respectively.

Three-year fixes

The largest gain at this level saw the 60% LTV average rate rise by 6 basis points to 3.23%.

While the 95% LTV average rate edged higher by 1 basis point to 3.35% and the 90% LTV average rate lifted by 2 basis points to 3.23%.

Five-year fixes

The biggest rises at this level saw the 75% LTV average rate rise by 6 basis points to 3.32% and the 90% LTV average rate climb by 5 basis points to 3.34%.

The 95% LTV average rate rose by 4 basis points to 3.51%, while the 85% LTV average rate was 3 basis points higher at 3.37%.

10-year fixes

The largest gains at this level saw the 95% LTV average rate jump by 20 basis points to 4.29 and the 90% LTV average rate climb by 11 basis points to 4.23%.

The 75% LTV average rate lifted by 2 basis points to 3.12%.

Moneyfacts finance expert Eleanor Williams says: “Rate increases continue to dominate the provider updates, as many of the average rates continue to tick upwards this week. Saffron Building Society put up a number of its fixed rates by up to 60 basis points, while rate rises of up to 30 basis points were made to selected products by TSB, Cumberland Building Society and Aldermore. 

Clydesdale Bank increased its fixed rates by up to 27 basis points and Yorkshire Bank made similar moves with rate rises of up to 25 basis points in their latest update. Elsew., Virgin Money put up fixed rates by 20 basis points, and Lloyds Bank and Generation Home both made increases of up to 19 basis points on various fixed rate offerings.

The level of product choice in the residential sector took a small tumble this week as lenders continue to tweak their ranges. Product withdrawals came from providers including TSB, who pulled five-year fixed rate deals with no fee from sale, two-year fixed rates with a £995 fee, and also three-year fixed rates with a two-year early repayment charge attached. Skipton Building Society also withdrew products, pulling its two-year fixed-rate product which carried £995 fees as well.

However, in balance, t. are also providers bringing new products to market as they look to cater to various borrower types, such as Saffron Building Society with the introduction of various deals, including some for first-time buyers as well as retro fit and retirement interest-only products.

Santander also launched new first-time buyer mortgages at various higher LTV brackets and with comprehensive incentive packages including cashback. Several mutuals also launched new products at 95% LTV this week, including Bath, Hanley Economic and Nottingham Building Society.”

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