Weekly rate watch: Prices rise sharply

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The average rate of all major patches has increased markedly this week, according to data from Moneyfacts.

The average rate for a two-year fixed rate rose 14 basis points to 3.44%, while the average rate for a three-year fixed rate jumped 33 basis points to 3.72%.

Looking further ahead, the average five-year fixed rate rose 16 basis points to 3.57%, while the average 10-year fixed rate rose 18 basis points to reach 3.69%.

Two-year corrections

The biggest increases at this level saw the average loan-to-value rate of 50% jump 24 basis points to 3.45%, while the average LTV rates of 95% and 70% both climbed 18 points. basis at 3.69% and 3.61%, respectively.

The 90% LTV rate increased by 16 basis points to 3.47% and the 85% LTV average rate increased by 15 basis points to 3.46%.

Three-year corrections

The largest gains at this level saw the average LTV rate of 65% jump 52bps to 5.13%, while the LTV rise of 70%ed by 50 basis points to 4.01%.

The LTV 95% rate increased by 15 basis points to 3.56% and the LTV 90% average rate increased by 31 basis points to 3.57%.

Five-year corrections

The largest increases at this level saw both the average LTV 85% rate and the average LTV 80% rate jump 17 basis points to 3.58% and 3.64%, respectively.

The 95% LTV average rate increased by 15 basis points to 3.73% and the 90% LTV average rate increased by 16 basis points to 3.55%.

10 year fixes

The largest increases at this level saw the 50% LTV average rate jump 40 basis points to 3.59%, while the 80% LTV average rate climbed 26 basis points to 3.46%.

95% LTV medium raised rate 20 basis points at 4.49%, while the average LTV rate at 90% remained unchanged at 4.23%.

Moneyfacts finance expert Eleanor Williams said: “Continuing the theme of recent weeks, rate hikes remain the predominant trend in the residential sector as we see average rates continue to climb.

Generation Home started the week with significant increases of 94 basis points across its entire mortgage lineup, while Cumberland Building Society included notable increases of up to 87 basis points on select fixed offerings in its update, and Hinckley and Rugby Building Society increased one-year fixed rates by around two to 81 basis points and launched new five-year fixed rate offerings.

On the side of the major brands, there have been changes to the TSB which has modified the ten-year fixed rates with increases of up to 60 basis points, and also returned a number of five-year fixed options at no cost to those who buy into its range. HSBC applied increases of between 45 basis points and 50 basis points to all fixed offers, and NatWest Group increased to 27 basis points on the majority of its fixed products. Additionally, Halifax has made relatively small rate increases to its fixed rates for home purchases of 10 basis points this week.

Among mutuals, we’ve seen Skipton Building Society raise a few of its fixed rates for new build properties up to 41 basis points. Nationwide Fixed Rates Increase to 40 basis pointsjust as the Yorkshire Building Society and the Coventry Building Society have raised rates on its range of mortgages by 40%. basis points as well.

The Leeds Building Society implemented rate hikes of up to 36 basis points through a selection of its core products, as well as various Interest Only and Retirement Interest Only offerings, and they also introduced a few new offerings to the market.

Virgin Money has increased its no-fee fixed rate offers by 20 basis points as well as the withdrawal of some of its transactions reserved for intermediaries. Among other lenders to withdraw product from the sale this week, Hodge withdrew its range, Vernon Building Society which removed all fixed rate products, as did Suffolk Building Society (except for its fixed rate RIO agreements ), and Bespoke by Bank of Ireland UK withdrew its fixed rates with selected incentives.

In addition, The Co-operative Bank and Platform has withdrawn some of its fixed rates which carried a charge of £999 or £1,499 (excluding business options) and Cumberland Building Society has withdrawn its fixed mortgages with a charge of £999.

As a result of these withdrawal updates, and despite some product launches by lenders, availability in the residential sector has dropped significantly, so it will be interesting to see how providers now react to a further rise in mortgage rates. Bank of England and the face of continuing economic uncertainty.

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