After a quiet start to the week, many major banks have raised mortgage rates, which far exceeds any cuts from other lenders.
As a result, the average two-year and five-year fixed interest rates rose by 0.01% for the second consecutive week, now at 4.98% and 5.02% respectively.
The average mortgage rate for monetary facts also increased from 5.01% to 5.02%.
As MoneyFactsCompare.co.uk Adam French pointed out, noted that famous brands that will select fixed tax rates increase this week include Barclays up to 0.10%, Santanders up to 0.13%, HSBC up to 0.20%, plus Lloyds Bank and Halifax up to 0.15%. On the other hand, TSB was reduced by 0.05%.
Several building associations have lowered selected fixed rates, including the Nottingham Building Society up to 0.10%, the progressive building society up to 0.14%, the Skipton Building Society up to 0.15%, and the Newbury Building Society up to 0.15%.
West Brom BS cuts its three-year contract by 95%, loan-to-value is 0.05%, and now it is priced at 4.93%. The deal comes with a free valuation and requires no fees.
HH Gen Den is up to 0.10%, while Aldermore opted for a cut of up to 0.20%.
“While there are a few notable reductions this week, several major lenders have raised mortgage rates after forecasts for interest rates and the future of the economy are even more frustrating,” the Frenchman said to weeks’ comments.
He believes it would be unpopular news for more than 350,000 households who locked into fixed-rate mortgages five years ago, when interest rates were at record lows and now this winter, their costs are likely to increase as they hit the end of the deal.
He added: “There is better news for first-time home buyers and borrowers with smaller deposits or only 5% or 10% limited equity, and they will find that the choice of higher loan-to-value (LTV) transactions has risen to its highest point in 17 years.”
