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Weekly Rate Watch: Prices are rising

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Data from Moneyfacts shows that average fixed rates increased across the board this week, up from last week’s lower pace.

The average two-year fixed rate rose 6 basis points to 3.93%, and the average three-year fixed rate rose 10 basis points to 4.27%.

Longer-term, the average five-year fixed rate rose 6 basis points to 4.07%, while the average 10-year fixed rate rose 11 basis points to 4.19%.

Biennial corrections

The biggest gains at this level saw the 70% average loan rate jump 11 basis points to 3.91%, while the 95% average LTV rate, the 80% average LTV rate and the 60% average LTV rate increased by 8 basis points to 4.21%, 3.96% and 3.64%, respectively.

The 90% LTV rate rose 7 basis points to 3.98%, and the average 85% LTV rate was 2 basis points higher at 3.96%.

Triennial corrections

The biggest increase at this level saw the average 95% LTV rate jump 16 basis points to 4.12%, and the average 85% LTV rate rose 11 basis points to 4.38%.

The average 90% LTV rate rose 8 basis points to 4.07%, and the average 80% LTV rate was 10 basis points higher at 4.26%.

Five-year corrections

The biggest gains at this level saw the 95% average LTV rate and the 80% average LTV rate rise 8 basis points to 4.17% and 4.15%, respectively.

The average 90% LTV rate rose 5 basis points to 4.00%, and the average 85% LTV rate was 6 basis points higher at 4.11%.

10-year corrections

The biggest increase at this level saw the average 50% LTV rate jump 33 basis points to 4.34% and the average 80% LTV rate jump 27 basis points to 4.08%.

In other notable increases, the average 85% LTV rate increased by 24 basis points to 4.17%, and the average 90% LTV rate increased by 19 basis points to 4.77%.

Moneyfacts financial expert Eleanor Williams says: “Unlike recent weeks, we’ve seen lower activity around mortgage product changes since Monday, possibly as providers await the Bank of England’s base rate decision next week, or , perhaps due to seasonal changes in the summer slowdown.

Product selection levels in the residential sector eased slightly again as the number of available deals eased after further withdrawals this week. This included updates from Platform and The Co-operative Bank, which scrapped all fixed rates at 95% LTV, as well as several five-year fixed rates, and Vida Homeloans, which cut all two-year fixed rates from its range.

Conversely, we’ve seen a number of providers reinstate previously withdrawn products, including Hodge, which has brought pension interest-only products back into its range, and Kensington, with Flexi Fixed for Termin.

As with last week, we covered several lender updates that included rate cuts. TSB has not only reinstated a number of new two-year fixed rate deals for those who shopped this week, but has also cut up to 35 basis points from selected fixed rate deals. Atom Bank’s digital mortgage also saw rates cut by up to 20 basis points across its Prime range.

However, the main trend is still an increase in rates, which contributes to the further growth of the overall average values. From the mutuals, we saw Darlington Building Society implement an increase of up to 60 basis points on selected fixed products, while Newcastle Building Society changed a variety of deals, including offers for self-employed borrowers, products for joint sole trader borrowers, large loan options and some interest only deals – their increase also by as much as 60 basis points.

Nationwide Building Society has increased its fixed rates by 35 basis points, while Coventry Building Society and West Brom Building Society have both increased their selected rates by 30 basis points.’

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