Average residential mortgage rates continue to climb as Moneyfacts reveals the weekly numbers.
For two-year fixed deals for all LTVs, the average rate has increased from 5.83% (on 9 June) to 5.98% today.
For a two-year fixed 95% LTV the rate is up 0.1% to 6.46%; for a 80% LTV the rate is now 6% from 5.87% and for a 75% LTV there is a 0.16% increase to 5.9%.
For a three-year fixed max 90% LTV the average rate is up to 5.95% from 5.76% last week. For a three-year fix with a maximum LTV of 75% the rate is up to 5.72% from 5.51%.
For a five-year fixed 90% LTV the rate is up 0.13% to 5.67% and for a five-year fixed at 75% LTV the average rate is up 0.15% over the week to 5.61%.
The average rate on a 10-year fixed 95% LTV is up to 6.23% from 6.08%; and for a 10-year fixed at 75% LTV the rate is up 0.1% to 5.15%
Moneyfacts finance expert Rachel Springall says the unnerving uncertainty surrounding interest rate pricing on mortgages has been prevalent over the past few weeks.
“Despite lenders such Barclays and TSB having reduced selected fixed rate mortgages since the start of the week, most fixed rate changes we’re seeing in the market are still increases. Average rates are still around the highest they’ve been so far in 2023, so it will be interesting to see how rates and availability fluctuate in the coming weeks.”
This week HSBC returned to the market with new prices for residential and buy-to-let borrowers with rates that are on average 25 basis points higher.
The range of the new rate rises — that include switching, first-time buyer and remortgage products – run between 5bps and 35bps.
Similarly, Santander for intermediaries reintroduced its home loans range with residential mortgages rising by as much as 69 basis points and buy-to-let deals up to 20bps higher for product transfers.
In addition to increasing rates, lenders have continued to pull products from the market. Yesterday. Mortgage Strategy reported Clydesdale Bank “temporarily” pulling all loans to new borrowers, while InterBay confirmed it had withdrawn its entire buy-to-let range at 65% LTV.