Mortgage rates plummeted for several months back in the summer of 2023, but the direction of deals since February has firmly been in the opposite direction.
Providers have continuously upped their rates and axed many sub-4% deals in the process. While the trend is in the same vein, lenders like Coventry Building Society have gone against the grain.
Gen H have followed suit, but the major lenders, including Santander and NatWest, have kept up the rate increases recently.
As it stands, the average two-year fixed residential mortgage rate is 5.79% – up from 5.78% the previous day, while the five-year equivalent remains at 5.35%, according to Moneyfacts data.
Read on for YourMoney.com’s round-up of all the changes across the mortgage market.
As mentioned, Coventry Building Society opted for a wave of cuts, which will include reduced rates on all two-year fixed purchase deals between 65% and 95% loan to value (LTV) with a fee.
Mutual decreases prices while major lenders keep rising
Two-year fixes with no fee between 75% and 95% LTV will also feel a trim, as will remortgage and purchase rates for longer-term fixed deals.
The cuts from the mutual will come into effect on 15 March and will also see two- and five-year fixed rates dropped in its buy-to-let (BTL) and portfolio ranges.
Nicolas Mendes from mortgage broker John Charcol said: “This latest reprice from Coventry is welcomed news considering the current typical rate increase notification from lenders in the past few weeks.
“But to keep it in perspective Coventry doesn’t sit within the best buys, so any reprice is unlikely to change the dynamics amongst the leading rates.”
Gen H also made reductions across its entire mortgage range up to 0.25% on five-year fixes up to 80% LTV. For deals of the same term length, to finance more of your property, prices have decreased by 0.19%.
Three-year fixed rates for 80% LTV plummeted by 0.13% and two-year fixes received a 0.16% cut.
NatWest pushes rates up further
Elsewhere, NatWest has upped select rate-switcher deals by up to 0.1% between 60% and 100% LTV.
Its two-year fixed rate-switch product at 90% LTV with no fee crept up by 0.1% to 6.19%. The same increase was applied to its 90% LTV deal with a £995 fee, which stands at 5.84%.
Hikes were also included in its five-year fixed rate-switcher deal at 75% LTV with no fee, rising from 4.74% to 4.84%.
Prices were a mixed bag of rises and reductions with Santander, which lowered new business and select residential remortgage rates up to 0.23%. But, its purchase and remortgage deals will creep up by up to 0.43%.
The lender’s product transfer range shot up by 0.36%, and if you are a new borrower either purchasing or remortgaging, rates rose up to 0.32%.
