This week several lenders reviewed their ranges and made fixed rate cuts, a positive continuation of the trend from last week where rate cuts outweighed increases.
However, as Moneyfacts finance expert Rachel Springall points out there were still some lenders increasing selected fixed mortgages, so the news is not all positive.
On selected fixed rate mortgages, Halifax made increases up to 0.24%, Bath Building Society made increases of up to 0.50% and Danske Bank made increases up to 0.89%.
A few of the lenders to withdraw and replace deals included Family Building Society, Digital Mortgages by Atom Bank, Principality Building Society and Halifax.
One of the deals from Atom Bank is available to borrowers at 95% loan-to-value, and is priced at 6.64%, fixed for three years.
“As may be expected from yesterday’s 0.25% base rate rise, several lenders moved to pass this on to their tracker rate mortgages as well as a few standard variable rates, so it will be interesting to see any more that may surface next week” Springall says.
She adds: “Those who still have a low-rate fixed mortgage would be wise to overpay where they can, with the aim of reducing their loan and the term of their mortgage. Interest rates on mortgages are much higher than some may realise, so borrowers will need to ensure they have surplus funds to meet higher repayments when they come off a lower rate deal”.
Consumers struggling with their outgoings amid the cost of living crisis, or who have become a ‘mortgage prisoner’, would be wise to seek independent advice to review their situation.”
