Prices fall again but at slower pace – Mortgage Strategy
All average fixed rate prices dropped this week, shows Moneyfacts data, but not to nearly the same extend as has been observed in recent weeks.
The average rate for a two-year fix fell 3 basis points, to 5.33%, and the average rate for a three-year fix slipped by a single basis point, to 5.22%.
Meanwhile, the average rate for a five-year fix lost 3 basis points, taking it to 5.05%, and the average price for a 10-year fix was reduced by 6 basis points, coming to 5.04% on Friday, 17 February.
Changes of note here took place at 95% LTV, where the average rate lost 2 basis points, giving a new price of 5.89% and, at 60% LTV, the average rate dropped 6 basis points, to 4.91%.
There was a rare move upwards too. At 70% LTV, a 4 basis point gain took its average rate to 5.60%.
As the headline rate change hints at, there were minimal changes here this week. While most rates at each LTV segment did fall, this was limited to a maximum move of 1 basis point.
At 95% LTV, the average rate lost 9 basis points, which gave a price of 5.41%.
And at 60% LTV, the average rate dropped 6 basis points, to 4.82%.
There were just three changes here this week, but all were significant.
At 80% LTV, the average rate was reduced by 13 basis points, to 4.69%. The average rate at 75% LTV fell, too – this time by 9 basis points, to 4.67%.
And at 60% LTV, an 8 basis point cut left the average rate at 5.08%.
Moneyfacts finance expert Eleanor Williams comments: “The residential sector has again seen competitive rate re-pricing this week, with providers such as first direct implementing some Best Buy worthy rate cuts, seeing some of its fixed rate products reduce by as much as 1.05%, and by up to 0.25% on selected variable rates.
“Barclays Mortgage also reduced various of its fixed rate offerings, in this case by up to 0.44%. Hodge cut up to 0.40% from its ‘Professionals only’ two-year fixed deals available up to 80% loan-to-value, and by 0.50% on the 90% LTV equivalents.
“From the mutuals there was quite a lot of activity this week. This included updates from Nationwide Building Society, where reductions of up to 0.20% were applied across both fixed and variable products between 0% and 90% LTV, and also slashing up to 0.70% from its offerings at 95% LTV.
“Newcastle Building Society also implemented rate cuts, with selected fixed options falling by as much as 0.79%. Cambridge Building Society refreshed a selection of its fixed rates including ‘interest-only’ offerings with maximum reductions of up to 0.35%. Elsewhere, Hinckley & Rugby reduced some of its two-year fixed products by up to 0.26%, while Darlington Building Society cut up to 0.40% from selected fixed rates and up to 0.16% from various discounted variable rate deals.
“Lloyds Bank made a couple of updates this week, which included reducing its variable tracker deals by up to 0.23% (with the exception of the 90% LTV option for those purchasing which increased by 0.17%), and also reducing selected house purchase fixed rate deals by up to 0.47% – although its two-year fixed purchase options at 95% LTV were increased by 0.13%.
“Halifax mirrored the variable tracker product amendments seen at Lloyds Bank and also cut a selection of its fixed rates by up to 0.36%, as well as adding a ‘Green’ option to its fixed rates for remortgage borrowers this week.”