Two-year fixed rate edges up -our weekly watch

Moneyfacts say that the average rate for a two-year fixed rate mortgage for all LTVs rose from 2.55% to 2.58% this week.

On the other hand, the average three-year fixed rate gained 1 basis point, going up to 2.67% and the average five-year fixed rate rose 2 basis points, rising to 2.76%.

The average 10-year fix stayed unchanged during the week at 2.85%.

Two-year fixes

There were two rises of momentous note within this fix: at 85% LTV the average rate growing from 3.04% to 3.10% and, at 65% LTV, it moved from 2.36% to 2.40%.

Three-year fixes

At 70% LTV the average rate rose substantially – from 3.33% to 3.50%, making for a 17 basis point difference.

At 90% LTV was the next biggest change. With this the average rate fell from 3.56% to 3.52%.

Five-year fixes

A 6 basis point rise form 3.16% to 3.22% at 85% LTV was the most noticable change in the category this week.

And at 65% LTV, the average rate climbed from 2.37% to 2.40%.

 

Moneyfacts finance expert Eleanor Williams says: “This week sees continued high levels of activity in the mortgage sector, particularly in the higher LTV tiers. Some notable updates included Metro Bank’s launch of new two-year fixed deals at 85 per cent LTV and its making significant reductions of 0.40 per cent on a couple products in this same tier.

“Amongst various changes, NatWest and RBS added deals for those looking to remortgage at 90 per cent LTV, and this week also saw specialist lender Kensington launch products across its various residential ranges, including the reintroduction of Help to Buy options.

“Lenders are continuing to adjust their ranges with updates not only to rates but criteria too, and so would-be borrowers would do well to secure the support and up to date knowledge of a qualified adviser to help explore the best choices for their circumstances.”