Average short-term fix hits two-year high as hikes continue – Mortgage Strategy
More lenders are set to raise prices tomorrow as Moneyfacts revealed that the average two-year fixed rate is now at its highest point for more than two years.
Molo Finance and Principality Building Society are the latest lenders to announce rate increases, but Leek Building Society is trimming prices tomorrow.
Today’s figures from Moneyfacts confirm the average two-year fixed rate is now at 5.91%, the highest it has been since July 2024 and up from 5.84% on Friday.
The average five-year fixed has reached 5.94%, the highest it has been since October 2023 in the aftermath of the Liz Truss mini-budget, and up from 5.88% on Friday.
Molo is raising costs on its non-resident and expat fixed rates by 25bps.
Principality Building Society will increase rates on its 65% LTV two-year tracker products by 15bps tomorrow.
The mutual is also raising prices by 10bps across its 65%, 75%, 80%, 85% and 90% LTV products.
However, Leek Building Society will reduce rates across its holiday let and limited company buy-to-let ranges.
Its 75% LTV two-year holiday let fix with a £995 fee will fall by 25bps, from 5.81% to 5.56%, while its five-year equivalent will reduce by 22bps, from 5.84% to 5.62%.
Within its limited company buy-to-let range, the 75% LTV two-year fix with no fee will fall by 25bps, from 6.03% to 5.78%, while the two-year fix with a £1,495 fee will reduce by 26bps, from 5.74% to 5.48%.
The 75% LTV five-year fix with no fee will fall by 25bps, from 5.95% to 5.70%, while the five-year fix with a £1,495 fee will reduce by 16bps, from 5.74% to 5.58%.
Leek is also adding new products to its range.
So far this week lenders including HSBC, Barclays, Halifax, BM Solutions and TSB have raised prices.
