Mortgage interest rates lower requirements as lenders ask: Monetary facts – Mortgage strategy
Mortgage prices have been lowered this week as lenders adjust pricing and policies to attract borrowers, so as to get downwards in the week before a possible base tax rate drop in August.
The latest MoneyFacts Ratewatch data shows that fixed mortgage rates fell by 0.02% to 5.01% on average for two years.
This means that the typical two-year fixed interest rate now matches the five-year average, with the five-year average remaining unchanged weekly.
This slightly lowered the average mortgage rate for the overall monetary facts to 5.04% from 5.05%.
Lloyds Bank and Halifax led the charges of mainstream lenders, cutting rates up to 0.28%, while Santander cuts selected products by up to 0.08%. Instead, Virgin Money added some higher loan value (LTV) transactions by up to 0.20%.
Mutual assistance is also active. Nationally, the selected fixed interest rates were up to 0.21%, the Coventry Building Society was 0.05%, and the Darlington Building Society increased by 0.20%.
The Leeds Building Association has launched a new “income booster” mortgage range with a biennial fix of 3.91% and a five-year fix of 4.07%. These products offer up to 5.5 times loan-to-income multiples to borrowers who earn at least £50,000 a year.
Further easing of affordability restrictions comes from MPower’s mortgage, which increased the fixed amount by 0.10% in about three years, and an accurate mortgage raises the LTI limit to 6 times that of all borrowers.
In this week’s outstanding deal, Santander’s two-year LTV was priced at 3.73% until November 2027.
“A bank on a high street has resumed its cuts after quiet, which is good news for first-time home buyers as more and more lenders are willing to incorporate loose loans into income rules, which can help more people get into the housing ladder.
“Interest rates are still on a downward trend, with average five-year and five-year fixed rates now at average rate levels. While swap rates are quite volatile, as both two-year and five-year rates have recently reached 30-day highs, many economists are still forecasting a lower base rate in August, which may give lenders greater confidence and can continue to move forward.”
