Fixed rates dip as variables rises, Moneyfacts finds – Mortgage Strategy

Average fixed-rate mortgage prices fell this week, while variables rose, the latest Moneyfacts rate watch has found.

The average two-fixed fixed rate fell from 5.96% last week to 5.93% today, while the five-year fell from 5.99% to 5.95% over the same period.

Barclays and Progressive Building Society made some of the largest fixed rate reductions this week, while Yorkshire Building Society also cut selected rates by up to 30bps.

Among the biggest brands, there were also rate moves by NatWest and Santander, with cuts of up to 20bps.

However, the latest Bank of England base rate increase is feeding through to tracker mortgages and revert rates, with several lenders increasing these by the full 25bps.

Moneyfacts finance expert Rachel Springall said: “Fixed mortgage rate cuts pushed average rates down this week, plus a variety of lenders caught up to the recent BBR hike to increase tracker and standard variable rates, yet it is uncertain whether lenders can sustain making significant fixed cuts.”

Fixed rate mortgage changes

Rate reductions

• Bank of Ireland Intermediaries – Selected fixed rates reduced by up to 8bps.
• Bank of Ireland UK – Selected fixed rates reduced by up to 8bps.
• Barclays Mortgage – Selected fixed rates reduced by up to 40bps.
• Coventry Building Society – Selected fixed rates reduced by up to 10bps.
• Gen H – Fixed rate mortgages reduced by up to 30bps.
• Leeds Building Society – Selected fixed rates reduced by up to 15bps.
• NatWest – Fixed rates reduced by up to 20bps, although one remortgage deal increased by 1bp.
• NatWest Intermediary Solutions – Fixed rates reduced by up to 20bps.
• Nottingham Building Society – Fixed rates reduced by 18bps to 22bps.
• Precise – Two-year fixed rates reduced by 10bps and five-year rates by 20bps.
• Progressive Building Society – Selected fixed rates reduced by up to 53bps.
• Royal Bank of Scotland – Fixed rates reduced by up to 20bps.
• Saffron Building Society – Selected fixed rates reduced by 20bps.
• Santander – Selected fixed rates reduced by up to 20bps.
• Skipton Building Society – Fixed rates reduced by up to 15bps.
• Yorkshire Building Society – Selected fixed rates reduced by up to 30bps.

Rate increases

• Darlington Building Society – Selected fixed rates increased by up to 20bps.

Tracker and discounted variable rate changes

• Barclays Mortgage – Premier tracker rate increased by 13bps, while another tracker rate reduced by 14bps.
• Darlington Building Society – Selected two-year discounted variable rates increased by 10bps.
• Halifax – Tracker rates increased by 25bps.
• Lloyds Bank – Tracker rates increased by 25bps.
• Loughborough Building Society – Two-year discounted variable rate reduced by 30bps.
• NatWest – Tracker rates increased by 25bps.
• NatWest Intermediary Solutions – Tracker rates increased by 25bps.
• Nationwide Building Society – Tracker rates increased by 25bps.
• Principality Building Society – Tracker rates increased by 25bps.
• Progressive Building Society – Selected discounted variable rates reduced by up to 16bps or increased by 2bps.
• Royal Bank of Scotland – Tracker rates increased by 25bps.
• Skipton Building Society – Tracker rates increased by 25bps.
• The Co-operative Bank for Intermediary Solutions – Tracker rates increased by 25bps.
• TSB – Tracker rates increased by 25bps.

New product launches

• Aldermore – New limited edition fixed rates from 6.62% for two years and 6.71% for five years, maximum 90% LTV.
• Barclays Mortgage – New remortgage fixed rates to 31 December 2028, from 5.20% at 75% LTV and 5.39% at 90% LTV.
• Bank of Ireland Intermediaries – New fixed rates to February 2032, including a 95% LTV house purchase deal at 5.60%.
• Bank of Ireland UK – New fixed rates to February 2032, from 5.21%.
• Hanley Economic Building Society – New five-year RIO fixed rate at 5.99%, maximum 70% LTV.
• Leeds Building Society – New fixed rates across first-time buyer, standard, Reach, interest-only and part-and-part ranges.
• Loughborough Building Society – New two-year fixed rates at 6.09% (80% LTV) and 6.39% (95% LTV).
• Mansfield Building Society – New two-year fixed rate at 5.99%, maximum 80% LTV.
• Monmouthshire Building Society – New fixed rates from 4.99% for two years and 4.93% for five years.
• Nationwide Building Society – New fixed rates from 4.89% for two and five years, alongside new two-year tracker rates from 4.34%.
• Vida Homeloans – New fixed rates from 5.68% to May 2029 and 6.06% to May 2032.

Withdrawals

• Progressive Building Society – Selected fixed and discounted variable rate mortgages at 60% and 75% LTV withdrawn.
• Skipton Building Society – LTI Booster fixed rates withdrawn and not replaced.
• West Brom Building Society – Selected discounted variable rates of 4.40% and 4.60% withdrawn.

Other changes

• Aldermore – Standard revert rate increased by 25bps to 8.63%.
• Bank of Ireland Intermediaries – Standard revert rate increased by 25bps to 7.19%.
• Bank of Ireland UK – Standard revert rate increased by 25bps to 7.19%.
• Foundation – Revert rates increased by 25bps.
• Gable Mortgages – Revert rate increased by 25bps to 7.00%.
• Gen H – Revert rates increased by 25bps.
• Halifax – Standard revert rate increased by 25bps to 7.49%.
• Lloyds Bank – Standard revert rate increased by 25bps to 7.49%.
• Nationwide Building Society – Standard revert rate increased by 25bps to 6.74%.
• NatWest – Standard revert rate increased by 25bps to 6.99%.
• NatWest Intermediary Solutions – Standard revert rate increased by 25bps to 6.99%.
• Nottingham Building Society – Income multiples amended, with maximum income of £60,000 attracting 4.49x and minimum income of £60,000 attracting 5.5x.
• Royal Bank of Scotland – Standard revert rate increased by 25bps to 6.99%.
• The Co-operative Bank for Intermediary Solutions – Standard revert rate increased by 17bps to 6.79%.
• TSB – Standard revert rate increased by 25bps to 7.49%.
• Virgin Money – Standard revert rate increased by 25bps to 6.99%.