Average fixed-rate mortgage rates have returned to June levels, with more than a dozen lenders repricing this week, according to Moneyfacts.
The average two-year mortgage rose 9 basis points to 5.59%, compared to 5.5% last week, the latest Moneyfacts interest rate watch found.
Meanwhile, the typical five-year fixing rate rose 5 basis points to 5.61% over the same period.
At higher loan-to-value levels, the average five-year fixed rate at 95% rose to 6% for the first time since the beginning of June, rising from 5.95% to 6.01% on a weekly basis, while the rate at 90% rose to 5.61% to 5.69%.
“This week has been dominated by mortgage interest rate increases, passed by more than a dozen lenders, including the biggest high street banks,” said Rachel Springall, finance expert at Moneyfacts. “The increases over the past two weeks alone have undo weeks of successive cuts to push average fixed interest rates back to where they were in June.
“Protracted tensions in the Middle East have weighed on the swap rates market, which in turn has pushed up mortgage costs, as lenders monitor swap rates to help them price fixed-rate deals. Concerns about global energy supply disruptions have sent oil prices above $100 a barrel this week, adding to market uncertainty and raising expectations that borrowing costs will be higher for longer.”
Fixed rate increases
- Mortgages Agreement – Increase specified fixed rate mortgages by up to 26 bits per second (July 22, mixed changes) and by 20 bps (July 24).
- Atomic bank – Increase fixed rate real estate loans by a percentage 25 bits per second; Nearby fixed rate mortgages rose by 10 bps (95% of LTV products remain unchanged).
- Bank of Ireland Brokers – Increase detailed fixed rate mortgages by up to 26 bits per second.
- Barclays Mortgage – Increase specified fixed rate mortgages by up to 19 bits per second.
- Halifax – Increase specified fixed rate mortgages by up to 20 bps (Direct and mediator).
- HSBC – Increase specified fixed rate mortgages by up to 20 bps.
- Leeds Building Society – Increase specified fixed rate mortgages by up to 15 bits per second (July 22); Increase income plus fixed rate mortgages by 15 bits per second (July 23).
- Lloyds Bank – Increase specified fixed rate mortgages by up to 20 bps.
- NatWest – Increase fixed rate mortgage loans by up to 20 bps.
- NatWest Middleware Solutions – Increase fixed rate mortgage loans by up to 20 bps.
- Perennial – Increase fixed rate real estate loans by a percentage 20 bps.
- Emirate Building Society – Increase specified fixed rate mortgages by up to 20 bps (mixed changes).
- Royal Bank of Scotland – Increase fixed rate mortgage loans by up to 20 bps.
- Santander – Increase specified fixed rate mortgages by up to 30 bits per second.
- Skipton Building Society – Increase specified fixed rate mortgages by up to 24 bits per second.
- Telecommunication Standardization Bureau – Increase specified fixed rate mortgages by up to 20 bps (July 21 and July 24).
- West Bromwich Building Society – Increase specified fixed rate mortgages by up to 22 bits per second.
- Yorkshire Building Society – Increase specified fixed rate mortgages by up to 17 bits per second (July 20). Following the withdrawals on 22 July, part of the range was reintroduced on 24 July with prices increased by up to 60 bits per second.
Fixed price discounts
- Mortgages Agreement – Fixed rate mortgages have been reduced by up to 11 bits per second (July 22, mixed changes).
- General H – Reducing fixed rate mortgages by a percentage 10 bps.
- Emirate Building Society – Fixed rate mortgages have been reduced by up to 7bps (mixed changes).
- Tipton and Cosley Building Society – RIO and lending to fixed rate mortgages for retirement have been reduced by a percentage 5 bits per second.
Product launches, recalls and other changes
- Bank of Ireland Brokers – Selected fixed rate mortgages withdrawn (July 23). Re-pricing bespoke fixed-rate mortgages and extending product end dates by two months (July 24).
- Bank of Ireland in the United Kingdom – Selected fixed rate mortgages have been withdrawn.
- Furness Building Society – Taking out a two-year fixed rate mortgage to buy a house; The remaining two-year fixed-rate mortgages have been expanded to be available for both home purchases and remortgages.
- Leeds Building Society – Launching new no-fee fixed-rate mortgages (July 22). Select fixed rate mortgages were withdrawn on 23 July and further products were withdrawn on 24 July.
- Marsden Building Society – Withdrawing a fixed rate mortgage.
- Newcastle Building Society – The basic and specialist fixed rate mortgage ranges have been withdrawn, along with selected variable track rates.
- Santander – New standard fixed rate mortgages launched. Product expiration dates have been extended by one month.
- Skipton Building Society – Extending product expiration dates by one month.
- Brokers Cooperative Bank – Mortgage scope has been temporarily withdrawn.
- Tipton and Cosley Building Society – New fixed rate mortgages and discounted variable rate mortgages were launched. Product expiration dates have been extended by one month.
- Telecommunication Standardization Bureau – Extending product expiry dates for three months.
- Vida Homeloans – Extending product expiration dates by one month.
- West Bromwich Building Society – Withdrawal of fixed rate mortgage to remortgage.
- Yorkshire Building Society – Selected fixed rate mortgages were withdrawn (22 July), with part of the range reintroduced on 24 July at higher rates and new fixed rate mortgages launched.
Track and monitor variable discounted price changes
- Mortgages Agreement – Variable tracking rates have been reduced by up to 16 bits per second Or increase by up to 3 bits per second (mixed changes).
- Halifax – Increase variable tracking rates by 10 bps.
- Leeds Building Society – Increase variable tracking rates by 10 bps.
- Lloyds Bank – Increase variable tracking rates by 10 bps.
- Newcastle Building Society – Withdraw variable tracking rates.
- Tipton and Cosley Building Society – Launch of new high income multiple discounted variable rates.
- Yorkshire Building Society – Increase variable tracking rates by up to 9 bits per second.
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