Average fixed mortgage rates continued to rise this week putting even greater pressure on UK homeowners and buyers.
The average two-year fixed with LTV of 95% rose from 6.88% last Friday to 7.08% today.
For a two-year fixed with max LTV of 8% the rate increased 0.22% over the week to 6.81%.
Similar increases are evident for three-year fixes. For a max 90% LTV three-year fixed deal, the average rate has risen to 6.77% from 6.48% last week. And for a three year max 75% LTV, the rate has jumped from 6.14% to 6.55%.
The average five-year fix with a 95% LTV has increased from 6.12% to 6.4% while the average rate on a max 70% LTV five year fix is now 6.,49% from 6.13% last week.
Moneyfacts finance expert Rachel Springall comments on the market.
“This week a few lenders withdrew some of their fixed deals, including Accord, Coventry BS, Skipton BS and West Brom BS. However, perhaps temporarily, The Co-operative Bank, Platform, Tipton & Coseley BS and Aldermore withdrew their full fixed rate ranges.
“The motion within the mortgage market continued with more rate rises this week, including some lenders who had already increased selected rates last week. Some of those lenders to change rates this week included Lloyds Bank which increased selected remortgage rates by up to 0.63%, Santander by up to 0.30% and TSB by up to 0.55%”.
Springall points out that a few more lenders have moved to pass on base rate rises to their standard variable rates this week, such as TSB and Family Building Society which increased by 0.50% and West Brom BS by 0.25%.
She adds: “This week the average two year fixed rate hit its highest point since 2008 and the mortgage market pricing seems focused on more interest rate rises, at a time were swap rates remain volatile”.
