A soft week of fixed mortgage prices after basic interest rate decisions – Mortgage Strategy
The fixed-rate price in the mortgage market remains a bit soft this week, as the Bank of England has a base rate of 4%.
After the marginal interest rate rise last week, Monetary Fact Data showed that until September 19 to today, lenders imposed relatively small interest rate rises and falls, resulting in small changes in the average.
As of now, the average two-year and five-year fixed has not changed, at 4.98% and 5.02% respectively.
However, the three-year fixed volume fell by 0.03%, an average of 4.87%, and fixed transactions increased by 0.02% to 5.71%.
Some of the major lenders that increased the cost of fixed-rate products this week were larger banks, with Santander rising as high as 0.13%, Barclays up to 0.44%, and H-Generation as high as 0.10%.
The Building Society also increased the rate this week, with the West Brom Building Society increasing the Yorkshire Building Society by 0.14% to 0.19%, the Skipton Building Society increased by 0.05%, the Leek Building Society as high as 0.05%, and the Darlington Building Society as high as 0.10%.
However, the National Building Society has reduced the amount by as much as 0.18%, the Leek Building Society has reduced the fixed amount to 0.13%, the Suffolk Building Society has a maximum reduction of 0.10%, and the Skipton Building Society has a maximum reduction of 0.20%.
Moneyfacts spokesman Caitlyn Eastell said mortgage affordability remains a problem.
“Keep expectations, yesterday the Bank of England decided to hold interest rates at 4%, but the drop rate and inflation rate are variable and the outlook remains uncertain.”
“This is evident through the prudent approach of lenders, as they have been declining interest rates over the past six months, but affordability remains a key issue for many borrowers, while lenders are still relaxing their LTI restrictions to enable potential buyers to borrow, but many borrowers can lend more, and real estate prices are still not exceeding many ranges.
“There may be different sentiment for millions of borrowers who want to cash out, with an average of more than £200 in transactions over two years, but those borrowers five years later face the burden of seeing them.”
