Average mortgage rates have continued to rise this week, according to the latest Moneyfacts rate watch.
For two-year fixed all LTVs, the average rate has increased for all LTVs from 6.19% on 23 June to 6.39% on 30 June 2023.
Two-year fixed 95% LTV has risen from 6.67% to 6.8% and for 85% LTV 6.28% rising to 6.46%. The average rate for a two-year fix at 75% LTV has risen 0.17% to 6.29%.
For a five-year fixed 90% LTV the average rate has increased from 5.7% to 5.81%; while for a five-year fix at 80 LTV the rate has increased from 5.94% to 6.04%.
Those taking on a five-year fix on 70% LTV, will now, on average, pay 6.15% – up 0.19% over the week.
Notable lender increases this week include Royal Bank of Scotland which upped selected fixed rate mortgages 0.29% with effect from 30 June.
Barclays announced an increase of 0.38% for selected two-year fixed deals with effect from end of June 2023.
And Virgin confirmed selected five-year fixed rates increasing by up to 0.08%, starting from 5.23% and buy-to-let two-year fixed rates will be increased by 0.10%, starting from 5.47%.
Moneyfacts finance expert Rachel Springall points out that it was another vigorous re-pricing week in the mortgage market, with notable brands making changes to their fixed rate deals.
Most rate movements in the market were in an upwards trajectory, seeing average fixed mortgage rates across the spectrum rising week-on-week.
“There were a variety of lenders who decided to increase selected fixed rates and the number of lenders increasing rates outpaced those reducing them by some way. A couple of household brands to increase rates included Santander, rising selected fixed rates by up to 0.46% and HSBC increasing by up to 0.55%”.
“A week on since the Bank of England increased base rate by 0.50%, there has been a few more lenders passing on the rise to their tracker mortgages. Some lenders have also decided to pass 0.50% onto their standard variable rates, such as Lloyds Bank.
She concludes: “The uncertainties surrounding mortgage interest rates will be a concern for borrowers who are about to come off fixed rate deal, or indeed those who are sitting on a standard variable rate.
“There are still some competitive deals for borrowers to choose from, so it’s vital they seek advice to go over their options. Those still locked into a low fixed rate would be wise to consider overpaying on their mortgage if they can, to reduce the term of their deal.”
