Financial facts – The Official Gazette of Real Estate Finance – Z News

The latest Price Watch data from Moneyfacts shows that the two-year average lock is now 5.65%, the three-year average is now 5.38%, and the five-year average is 5.61%.

It follows multiple cuts over the past seven days including by major brands such as Halifax, Lloyds and HSBC, as well as several specialist and buy-to-let lenders.

Within individual product categories there were some sharp declines.

The largest reduction was for three-year fixes at 70% loan-to-value, which fell by 9 basis points to 5.65%, while five-year fixes at the same maximum fell by 5 basis points to 5.37%.

There was also some good news for borrowers with smaller deposits, as two-year fixes at 90% P/E fell by 5 basis points to 5.89%, and three-year fixes at the same P/E ratio fell by 4 basis points to 5.55%.

The five-year average equivalent also decreased by 3 basis points to 5.71%.

“Average new mortgage interest rates fell slightly again this week, with higher loan-to-value products aimed at first-time buyers and home movers seeing some of the biggest falls,” says Adam French, head of consumer at Moneyfacts.

“However, rates are still slightly higher than before the war in Iran.

“The average two-year fixed mortgage rate was 4.83% and the five-year fixed rate averaged at 4.95% at the beginning of March.

“Some of the biggest declines in average interest rates this week were among products with higher loan-to-value ratios, as lenders compete to attract new borrowers.”

He points out that 14 lenders reduced fixed interest rates compared to just one lender that made a significant increase.

Many lenders have also launched new 90% and 95% LTV products in a bid to attract more first-time buyers.

French adds: “It is encouraging for prospective buyers that the gradual easing of mortgage rates comes at a time when both Halifax and Nationwide have reported modest month-on-month house price declines, with annual house price growth also slowing.

“For potential buyers in a strong financial position, the combination of weak house price growth and improving mortgage rates could mean they are in a strong negotiating position when making a purchase.

“However, the picture is less rosy for sellers, particularly in London and the south-east where affordability pressures were already impacting demand before the economic turmoil caused by the Iranian conflict drove mortgage pricing.

“Higher borrowing costs continue to have a significant impact on more expensive housing markets, where even small price movements can result in a significant shift in monthly payments.”

Noticeable changes

• Coventry Building Society – Fixed interest rates have been reduced by up to 12 basis points.
• Darlington Building Society – Reducing fixed interest rates by up to 30 basis points; Completion dates have been extended.
• Seed Home Loans – Fixed interest rates reduced by up to 15 basis points; Selected limited edition products have been recalled.
• Gen H – Specific fixed rates discounted by up to 20 basis points.
• HSBC – reduced fixed interest rates by up to 29 basis points; Reduced cash back incentives.
• Halifax – Fixed interest rates have been cut by up to 14 basis points.
• Leeds Building Society – Fixed interest rates have been reduced by up to 32 basis points.
• Lloyds Bank – Reducing fixed interest rates by up to 12 basis points.
• Loughborough Building Society – Increase selected discounted variable rates by up to 60 basis points.
• Newcastle Building Society – fixed interest rates reduced by up to 34 basis points; Completion dates have been extended.
• Pepper Money – Selected specialist fixed rates discounted by up to 80 basis points.
• Santander – Reducing fixed interest rates by up to 17 basis points; Increase the maximum loan size on a specific product.
• Scottish Building Society – Fixed interest rates rose by up to 40 basis points.
• Intermediaries Cooperative Bank – Reducing fixed interest rates by up to 27 basis points; Completion dates have been extended.
• Vida Homeloans – Reducing fixed interest rates by 15 basis points; Completion dates have been extended.
• West Brom Building Society – fixed fixed rates reduced by up to 33 basis points; Reduced duties on selected products; Completion dates have been extended.

Product launches, recalls and scope changes

• Buckinghamshire Building Society – launching a new short-term, discounted variable rate mortgage.
• Dudley Building Society – The existing broker range has been expanded and made available to all brokers rather than introducing new products.
• Foundation Home Loans – A new fixed rate range has been launched following the withdrawal of the Limited Edition products.
• Hinckley & Rugby Building Society – launching discounted variable mortgages for the new Skilled Worker Visa (up to 95% LTV).
• Hodge – Standards change to the current range, including higher loan limits and wider remortgage availability.
• Loughborough Building Society – New superannuation, semi-primary, poor credit and credit repair products launched. Lending to the pension discounted variable product has been withdrawn and replaced by borrowing in the pension band.
• Newcastle Building Society – New fixed rate mortgage launched.
• Nottingham Building Society – New Life Happens fixed price range launched.
• Scottish Building Society – A new fixed price LTV-only purchase of 95% has been launched.
• Tipton & Coseley Building Society – New multi-income discounted variable range launched.
• West Brom Building Society – New fixed rates have been launched for new build only.
• Yorkshire Building Society – Completion dates extend across the range.