Despite market concerns about gilt yields rising, there was relatively little change in mortgage pricing this week.
The cost of the average two-year and three-year fixed rate mortgage fell slightly — down 1 and 2bps per respectively according to Moneyfacts data. However its figures show that the cost of the average five-year fix increased marginally, by just 1bp.
Across these different fixed-rate terms, there were generally increases on larger LTV bands, with these going up on average on two-, three- and five-year fixes. In contrast there tended to be price reductions on lower LTV loans.
A number of high street mortgage banks cut selected fixed rates, including First Direct and HSBC (with rates down by 30bps and 16bps respectively).TSB cuts rates by up to 15bps, but also made increases of up to 20bps on other selected deals. Meanwhile Virgin Money made increases of up to 3bps on selected five-year fixed deals.
Some of the biggest rate cuts were from United Trust Bank, which reduced rates by up 70bps on its prime range. There was also more significant rate changes at Accord Mortgages, which reduced rates by up to 43bps, increased rates by up to 17bps and launched a new deal at 95% loan-to-value.
Other specialist lenders also reduced rates, with MPowered Mortgages cutting rates by up to 32bps, Gen H by up to 22 bps, and Bluestone Mortgages by up to 0.10%.
Building societies were also repricing mortgage deals this week, with West Brom Building Society reducing rates on selected deals by up to 22bps but increasing other products by up to 20bps.
Meanwhile, Yorkshire Building Society reduced by up to 27bps but made more significant rate increases – by up to 43bps. Skipton Building Society reduced rates by up to 11bps and increased other rates by up to 23bps.
Leeds Building Society increased rates by up to 10bps, but also withdrew some of its fixed-rate products.
However there were also other new deals for brokers to consider with West From launching new deals, alsongide the Penrith Building Society, which offered a a new two-year fixed deal at 80% loan-to-value. Kensington also launched a new ‘select special’ mortgages with fixed terms of two- or five-years.
Moneyfacts financial expert Rachel SpringallSpringall says: “There were some eye-catching deals to surface this week, including a two-year fixed rate remortgage deal from Yorkshire Building Society, priced at 5.25% and available at 90% loan-to-value, it includes a free valuation, free legal fees, £250 cashback and charges a £495 product fee.”
