Weekly rate watch: Prices climb higher

For a two-year fix, the average lifted by 8 basis points to 3.30%, while the average for a three-year fix rose by 6 basis points to 3.39%.

Over longer terms, the average for a five-year fix climbed by 4 basis points to 3.41%, while the average for a 10-year fix lifted by 9 basis points to 3.51%.

Two-year fixes

The biggest rises at this level saw the 50% loan-to-value average rate jump 21 basis points to 3.19%, while the 65% LTV average rate climbed by 16 basis points to 3.71%.

The 95% LTV rate rose by 5 basis points to 3.51% and the 90% LTV average rate was 6 basis points higher at 3.42%.

Three-year fixes

The largest gains at this level saw both the 85% LTV and the 75% LTV by 9 basis points to 3.49% and 3.31%, respectively.

The 95% LTV rate and the 90% LTV average rate both rose by 4 basis points to 3.41% and 3.28%, respectively.

Five-year fixes

The biggest rises at this level saw the 65% LTV average rate jump 14 basis points to 3.93%, while the 50% LTV average rate climbed by 10 basis points to 3.39%.

The 95% LTV rate rose by 3 basis points to 3.58% and the 90% LTV average rate was 4 basis points higher at 3.39%.

10-year fixes

The biggest rises at this level saw the 50% LTV average rate jump 20 basis points to 3.19%, while the 80% LTV average rate climbed by 13 basis points to 3.20%.

The 95% LTV rate and the 90% LTV average rate were both unchanged at 4.29% and 4.23%, respectively.

Moneyfacts finance expert Rachel Springall says: “Rate rises dominated the residential mortgage market this week, with several well-known lenders making movements as well as various building societies. We also had sight of a few lenders increasing their standard variable rates and a few fixed deals pulled from the market.

“The biggest fixed-rate rise we saw was from Lloyds Bank that increased selected fixed rates by up to 81 basis points. This was followed by Halifax who increased selected fixed rates by up to 60 basis points for both direct business and intermediaries.

A few other big banks made moves this week, including Barclays Bank who increased rates by up to 20 basis points and launched new fixed rates at several LTV bands, including a new deal under the mortgage guarantee scheme priced at 3.35% to 31 August 2027 for borrowers with a 5% deposit. HSBC added a £500 cashback incentive to selected fixed deals this week, but they also increased other fixed options by up to 25 basis points and launched a few more deals at higher LTVs.

“TSB also decided to increase selected fixed rates by up to 35 basis points but they also withdrew a few of their ‘new build’ fixed deals.

“T. were several building societies tweaking their mortgage ranges this week, the largest rate uplift we recorded among these brands was from Skipton Building Society, upping its ‘large loan’ fixed rates by up to 56 basis points, as well as withdrawing selected fixed mortgages and variable trackers.

“Nottingham Building Society launched several new fixed mortgages at higher LTVs, including a deal at 95% LTV priced at 3.65% to 31 July 2024, but they also increased some fixed deals by up to 50 basis points. Newcastle Building Society introduced several new fixed mortgages and discounted variable rates to its range, including deals at 80%, 90% and 95% LTV.

“Nationwide increased fixed rates for remortgage customers by up to 30 basis points and house purchases by up to 20 basis points. Furness Building Society increased its two-year fixed mortgage at 2.69% by 20 basis points, Coventry Building Society increased fixed rates by up to 55 basis points but reduced its variable tracker by 31 basis points, and they also launched new fixed rates and variable rate trackers.

“Another lender to increase its fixed rates, but not as high as some, was Suffolk Building Society with an uplift of 20 basis points on selected five-year fixed rates, they also reduced discounted variable rates by up to 35 basis points. Chelsea Building Society and Beverly Building Society also increased selected fixed rates by up to 29 basis points and 24 basis points, respectively.

“Hanley Economic Building Society and Yorkshire Building Society withdrew some deals from their range and Family Building Society increased selected fixed rates by up to 20 basis points and launched a few ‘interest only’ deals to its range.”

“We also noted a few more lenders passing on 25 basis points to their Standard Variable Rates, including Clydesdale and Yorkshire Bank, Metro Bank and Virgin Money.”

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