Lenders trim rates again as competition heats up: Moneyfacts – Mortgage Finance Gazette

The average two-year fixed rate is now 5.46%, down from 5.51% last week.

The typical five-year fixed rate is also currently 5.51%, a reduction from 5.48% one week ago.

The mortgage type to see the largest average rate cuts were two-year fixes to 65% LTV, with a 16bps cut to 5.72%.

Cuts of 15bps were made to three-year fixes to 85% LTV, now at an average 5.17%, and five-year fixes to 65% LTV, now 5.21%.

The biggest hike was made to five-year fixes to 100% LTV, with a 28bps average rise to 6.05%.

Moneyfacts finance expert Rachel Springall said: “Fixed rate mortgage cuts took precedence this week, with 20 lenders passing on reductions, while others launched new deals or refreshed existing ranges. Building societies made some notable rate moves and competition was particularly strong at higher loan-to-value tiers.

“Lenders have continued to make healthy reductions to fixed mortgage rates over recent weeks as lower swap rates have fed through into mortgage pricing.

“Another week of widespread rate reductions will no doubt be welcomed, especially on deals available to those with small deposits.

“While improvements in global market sentiment over the past few weeks have triggered falling swap rates, funding costs remain extremely sensitive to geopolitical tensions. Any renewed market volatility could quickly feed through into swap rates and slow the pace of further mortgage rate reductions over the coming weeks.”

Barclays made selected fixed rate cuts of up to 66bps, with Halifax and Lloyds Bank cutting by up to 15bps.

Nationwide Building Society reduced fixed rates by up to 19bps. Yorkshire Building Society also reduced selected fixed rates by up to 20bps.

Building societies were highly active throughout this week. West Brom Building Society reduced selected fixed rates by up to 18bps, while Leeds Building Society cut fixed rates by up to 21bps and launched new five-year products at 80% and 85% LTV.

Fixed rate changes

• Accord Mortgages – Fixed rates reduced by up to 30bps.
• AIB (NI) – Fixed rates reduced by up to 19bps, although selected 95% LTV products increased by up to 4bps.
• Afin Bank – Fixed rates reduced by up to 15bps, although some products increased by up to 10bps.
• Atom Bank – Fixed rates reduced by up to 20bps.
• Bank of Ireland Intermediaries – Fixed rates reduced by up to 40bps.
• Bank of Ireland UK – Fixed rates reduced by up to 40bps.
• Barclays – Fixed rates reduced by up to 66bps.
• Coventry Building Society – Fixed rates increased by up to 7bps.
• Danske Bank – Selected large loan fixed rates reduced by up to 16bps.
• Gen H – Selected fixed rates increased by 5bps.
• Halifax – Fixed rates reduced by up to 15bps.
• Kensington – Fixed rates reduced by up to 40bps.
• Leeds Building Society – Fixed rates reduced by up to 21bps.
• Lloyds Bank – Fixed rates reduced by up to 15bps.
• Nationwide Building Society – Fixed rates reduced by up to 19bps.
• Pepper Money – Fixed rates reduced by up to 139bps.
• Principality Building Society – Fixed rates reduced by up to 17bps.
• Scottish Building Society – Fixed rates reduced by up to 35bps (excluding unchanged 95% LTV products).
• Skipton Building Society – Fixed rates increased by up to 14bps.
• United Trust Bank – Fixed rates reduced by up to 100bps.
• Virgin Money – Fixed rates reduced by up to 16bps.
• West Brom Building Society – Fixed rates reduced by up to 18bps.
• Yorkshire Building Society – Fixed rates reduced by up to 20bps.

Tracker and discounted variable rate changes

• Afin Bank – Tracker rates reduced by up to 40bps, although some products increased by up to 41bps.
• Ecology Building Society – Discounted variable rate increased by 50bps.
• Hinckley & Rugby Building Society – Discounted variable rates increased by up to 25bps.
• Nationwide Building Society – Tracker rates reduced by up to 12bps.
• Skipton Building Society – Tracker rates increased by 11bps.
• United Trust Bank – Tracker rates reduced by up to 100bps.
• Virgin Money – Tracker rates reduced by up to 15bps.
• Yorkshire Building Society – Tracker rates increased by 3bps.